Edgar Filing: TEMPLETON GLOBAL INCOME FUND

TEMPLETON GLOBAL INCOME FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05459

Templeton Global Income Fund

(Exact name of registrant as specified in charter)

300 S.E. 2^nd Street, Fort Lauderdale, FL 33301-1923

(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant’s telephone number, including area code: (954) 527-7500

Date of fiscal year end: 12/31

Date of reporting period: 12/31/17

Item 1.

Reports to Stockholders.

Annual Report

December 31, 2017

Templeton Global Income Fund

LOGO

Franklin Templeton Investments

Gain From Our Perspective^®

At Franklin Templeton Investments, we’re dedicated to one goal: delivering exceptional asset management for our clients. By bringing together multiple, world-class investment teams in a single firm, we’re able to offer specialized expertise across styles and asset classes, all supported by the strength and resources of one of the world’s largest asset managers. This has helped us to become a trusted partner to individual and institutional investors across the globe.

Contents

Annual Report


Templeton Global Income Fund			2

Performance Summary			6

Important Notice to Shareholders			7

Financial Highlights and Statement of Investments			8

Financial Statements			17

Notes to Financial Statements			20

Report of Independent Registered Public Accounting Firm			30

Tax Information			31

Annual Meeting of Shareholders			32

Dividend Reinvestment and Cash Purchase Plan			33

Board Members and Officers			35

Shareholder Information			40

Visit franklintempleton.com/investor/ products/products/closed-end-funds for fund updates, to access your account, or to find helpful financial planning tools.

Not FDIC Insured

May Lose Value

No Bank Guarantee

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Annual Report

Templeton Global Income Fund

Dear Shareholder:

This annual report for Templeton Global Income Fund covers the fiscal year ended December 31, 2017.

Your Fund’s Goal and Main Investments

The Fund seeks high, current income, with a secondary goal of capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in income-producing securities, including debt securities of U.S. and foreign issuers, including emerging markets.

Performance Overview

For the 12 months under review, the Fund delivered cumulative total returns of +4.10% based on market price and +2.67% based on net asset value. For comparison, the global government bond market, as measured by the J.P. Morgan (JPM) Global Government Bond Index (GGBI), had a cumulative total return of +6.83% in US dollar terms for the same period.¹ You can find the Fund’s long-term performance data in the Performance Summary on page 6.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown.

Economic and Market Overview

The year began with a rally in emerging markets (EMs), as fourth-quarter 2016 fears for potential trade shocks dissipated. Capital moved into several markets we considered undervalued at a pace not seen in a number of years. The strengthening trends in specific EMs largely continued throughout much of 2017, particularly in select areas of Latin America and Asia.

Duration exposures around the world generally performed well during the year, as rates in developed markets remained relatively low or range-bound, while a number of EM

Portfolio Composition*

Based on Total Net Assets as of 12/31/17

LOGO

*Figures represent the net Fund exposure and include certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives or other factors.

**Includes US and foreign treasury bills, money market funds and net other assets less liabilities.

local-currency markets saw declining yields and strengthening valuations.

The 10-year US Treasury note reached its highest yield of 2017 at 2.62% on March 13, two days before the US Federal Reserve (Fed) made its first rate hike of 2017. However, yields declined in the second and third quarters as policy setbacks from the Trump administration and subdued inflation figures appeared to dampen expectations for higher rates.

Those negative trends began to reverse in the fall months as Fed Chair Janet Yellen returned from Jackson Hole, Wyoming, with more hawkish-sounding comments on the need to normalize monetary policy. Additionally, a moderate pickup in inflation, exceptional strength in US labor markets, progress on tax reform and a new Fed chair nomination (Jay Powell) appeared to push rate expectations higher, in our opinion. The Fed also began unwinding its nearly $4.5 trillion balance sheet in October. Ultimately, the Fed raised rates 25 basis points three times in 2017, as it indicated it would.

On the currency front, the US dollar broadly weakened during much of the year, with notable weakness against the euro and Mexican peso during the summer months. Those trends moderately reversed in September and October, before resuming over the final two months of the year, leaving the US dollar broadly weaker in 2017.

1. Source: Morningstar.

The index is unmanaged and includes reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI).

The SOI begins on page 9.

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TEMPLETON GLOBAL INCOME FUND

In Europe, economic optimism surged in the summer months, driven by the cyclical upswing in eurozone growth as well as some political refortifying after Emmanuel Macron’s victory in the French election in May. The euro appreciated 13.85% against the US dollar during the year.² However, growing populist/nationalist movements in a number of countries continued to test the political cohesion across the eurozone. Angela Merkel’s win in the German election in September came with new uncertainties around forming a coalition government.

In October, European Central Bank (ECB) President Mario Draghi announced a reduction in the ECB’s bond-buying program, as expected, to €30 billion per month, down from a €60 billion monthly pace, scheduled to begin in January 2018. Draghi also indicated that rates would not be hiked until quantitative easing (QE) ends, implying that rates would likely remain unchanged in the upcoming year.

In Japan, Prime Minister Shinzo Abe’s political mandate was reaffirmed after his political coalition maintained its supermajority in October elections. The Bank of Japan (BOJ) continued to deploy massive levels of QE throughout 2017; however, the yen appreciated 3.54% against the US dollar during the year.²

Geographic Composition*

Based on Total Net Assets as of 12/31/17

LOGO

**The Fund’s supranational investment was denominated in the Mexican peso.

2. Source: FactSet.

Investment Strategy

We invest selectively in bonds around the world to generate income for the Fund, seeking opportunities while monitoring changes in interest rates, currency exchange rates and credit risks. We seek to manage the Fund’s exposure to various currencies and may use currency forward contracts.

Manager’s Discussion

On the whole, we continued to position the Fund for rising rates by maintaining low portfolio duration and aiming at a negative correlation with US Treasury returns. We also continued to actively seek select duration exposures that we believe can offer positive real yields without taking undue interest-rate risk, favoring countries that we believe have solid underlying fundamentals and prudent fiscal, monetary and financial policies. When investing globally, investment opportunities may take time to materialize, which may require weathering periods of volatility as the longer term investing theses develop. During the period, we added to some of our strongest investment convictions as prices became cheaper during periods of heightened volatility. We also maintained exposures to a number of emerging market currencies that we believe remained fundamentally undervalued. Overall, we were positioned for depreciation of the euro and Japanese yen, rising US Treasury yields, and currency appreciation in select emerging markets. During the period, we used forward currency exchange contracts to actively manage currencies. We also used interest-rate swaps to tactically manage duration exposures.

What is duration?

Duration is a measure of a bond’s price sensitivity to
interest-rate changes. In general, a portfolio of securities
with a lower duration can be expected to be less sensitive
to interest-rate changes than a portfolio with a higher
duration.

What is a currency forward contract?

A currency forward contract is an agreement between the
Fund and a counterparty to buy or sell a foreign currency in
exchange for another currency at a specific exchange rate
on a future date. Currency forward contracts are privately
traded in the interbank market, not on a centralized
exchange.

During the period, the Fund’s positive absolute performance was largely attributable to interest-rate strategies and sovereign credit exposures. Currency positions had a largely neutral effect

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TEMPLETON GLOBAL INCOME FUND

What is an interest-rate swap?

An interest-rate swap is an agreement between two parties
to exchange interest-rate payment obligations, generally
one based on an interest rate fixed to maturity and the other
based on an interest rate that changes in accordance with
changes in a designated benchmark (for example, LIBOR,
prime, commercial paper or other benchmarks).

Currency Composition*

12/31/17


	% of Total Net Assets

Americas		161.7%

US Dollar		114.2%

Mexican Peso		22.7%

Brazilian Real		13.3%

Argentine Peso		4.2%

Colombian Peso		4.0%

Peruvian Neuvo Sol		3.3%

Middle East & Africa		3.5%

South African Rand		1.8%

Ghanaian Cedi		1.7%

Asia Pacific		-26.9%

Indian Rupee		12.7%

Indonesian Rupiah		10.0%

Philippine Peso		1.4%

South Korean Won		-7.4%

Australian Dollar		-8.9%

Japanese Yen		-34.7%

Europe		-38.3%

Euro		-38.3%

on performance. The Fund maintained a defensive approach regarding interest rates in developed markets, while holding duration exposures in select emerging markets. Select duration exposures in Latin America (Brazil) and Asia ex-Japan (Indonesia) contributed to absolute performance, while negative duration exposure to US Treasuries detracted. Among currencies, the Fund’s net-negative positions in the euro, the Japanese yen and the Australian dollar detracted from absolute results. However, currency positions in Latin America (the Mexican peso and Brazilian real) and Asia ex-Japan (the Indian rupee) contributed to absolute performance.

On a relative basis, the Fund’s relative underperformance was largely due to currency positions. Interest-rate strategies and sovereign credit exposures contributed to relative results. Among currencies, the Fund’s underweighted positions in the euro, the Japanese yen and the Australian dollar detracted from relative performance. However, overweighted currency positions in Latin America (the Mexican peso and Brazilian real) and Asia ex-Japan (the Indian rupee) contributed to relative results. The Fund maintained a defensive approach regarding interest rates in developed markets, while holding duration exposures in select emerging markets. Select overweighted duration exposures in Latin America (Brazil) and Asia ex-Japan (Indonesia) contributed to relative performance, while underweighted duration exposure in the US detracted.

Thank you for your continued participation in Templeton Global Income Fund. We look forward to serving your future investment needs.

Sincerely,

LOGO

Michael Hasenstab, Ph.D.

Lead Portfolio Manager

LOGO

Sonal Desai, Ph.D.

Portfolio Manager

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TEMPLETON GLOBAL INCOME FUND

The foregoing information reflects our analysis, opinions and portfolio holdings as of December 31, 2017, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

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TEMPLETON GLOBAL INCOME FUND

Performance Summary as of December 31, 2017

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not reflect any sales charges paid at inception or brokerage commissions paid on secondary market purchases. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 12/31/17¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+2.67%

+4.10%

+2.67%

+4.10%

5-Year

+5.25%

-7.49%

+1.03%

-1.54%

10-Year

+87.76%

+80.05%

+6.50%

+6.06%

Distributions _{(1/1/17–12/31/17)}

Net Investment
Income

$0.2866

All investments involve risks, including possible loss of principal. Changes in interest rates will affect the value of the Fund’s portfolio value, share price and yield. Bond prices generally move in the opposite direction of interest rates. As prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments of countries where the Fund invests. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific market event. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio that may result in significant volatility and cause the Fund to participate in losses (as well as enable gains) on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits and may realize losses when a counterparty fails to perform as promised. As a nondiversified investment company, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results.

1. The Fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 2/28/18. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on the dividend reinvestment and cash purchase plan.

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TEMPLETON GLOBAL INCOME FUND

Important Notice to Shareholders

Share Repurchase Program

The Fund’s Board previously authorized the Fund to repurchase up to 10% of the Fund’s outstanding shares in open-market transactions, at the discretion of management. This authorization remains in effect.

In exercising its discretion consistent with its portfolio management responsibilities, the investment manager will take into account various other factors, including, but not limited to, the level of the discount, the Fund’s performance, portfolio holdings, dividend history, market conditions, cash on hand, the availability of other attractive investments and whether the sale of certain portfolio securities would be undesirable because of liquidity concerns or because the sale might subject the Fund to adverse tax consequences. Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements, Federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund. If and when the Fund’s 10% threshold is reached, no further repurchases could be completed until authorized by the Board. Until the 10% threshold is reached, Fund management will have the flexibility to commence share repurchases if and when it is determined to be appropriate in light of prevailing circumstances.

In the Notes to Financial Statements section, please see note 2 (Shares of Beneficial Interest) for additional information regarding shares repurchased.

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TEMPLETON GLOBAL INCOME FUND

Financial Highlights


	Year Ended December 31,						Year Ended August 31,
	2017			2016^a			2016			2015			2014			2013

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$ 7.34			$ 7.09			$ 7.38			$ 8.72			$ 8.38			$ 9.08


Income from investment operations:

Net investment income^b		0.36			0.10			0.31			0.33			0.35			0.38

Net realized and unrealized gains (losses)		(0.16	)		0.25			(0.30	)		(1.04	)		0.61			(0.07)


Total from investment operations		0.20			0.35			0.01			(0.71	)		0.96			0.31


Less distributions from:

Net investment income and net foreign currency gains		(0.29	)		—			(0.11	)		(0.63	)		(0.62	)		(0.72)

Net realized gains		—			—			(0.02	)		(—	)^c		(—	)^c		(0.29)

Tax return of capital		—			(0.10	)		(0.17	)		—			—			—


Total distributions		(0.29	)		(0.10	)		(0.30	)		(0.63	)		(0.62	)		(1.01)


Net asset value, end of year		$ 7.25			$ 7.34			$ 7.09			$ 7.38			$ 8.72			$ 8.38


Market value, end of year^d		$ 6.46			$ 6.48			$ 6.43			$ 6.22			$ 7.96			$ 8.03


Total return (based on market value per share)^e		4.10%			2.38%			8.35%			(14.76	)%		7.04%			(5.97)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates and expense reduction		0.76%			0.73%			0.76%			0.74%			0.73%			0.73%

Expenses net of waiver and payments by affiliates and expense reduction		0.69%			0.68%			0.73%^g			0.73%			0.73%	^g,h		0.73%^g

Net investment income		4.84%			4.31%			4.38%			4.14%			4.05%			4.21%

Supplemental data

Net assets, end of year (000’s)		$972,791			$984,355			$951,191			$989,595			$1,169,318			$1,124,611

Portfolio turnover rate		42.34%			25.94%			46.03%			35.51%			45.61%			18.16%

^aFor the period September 1, 2016 to December 31, 2016.

^bBased on average daily shares outstanding.

^cAmount rounds to less than $0.01 per share.

^dBased on the last sale on the New York Stock Exchange.

^eTotal return is not annualized for periods less than one year.

^fRatios are annualized for periods less than one year.

^gBenefit of expense reduction rounds to less than 0.01%.

^hBenefit of waiver and payments by affiliates rounds to less than 0.01%.

Annual Report | The accompanying notes are an integral part of these financial statements.

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TEMPLETON GLOBAL INCOME FUND

Statement of Investments, December 31, 2017


		Principal Amount*				Value
	Foreign Government and Agency Securities 62.2%
	Argentina 3.9%
	Argentine Bonos del Tesoro,
	21.20%, 9/19/18		12,712,000		ARS	$	662,999
	18.20%, 10/03/21		246,122,000		ARS		13,578,856
	16.00%, 10/17/23		91,427,000		ARS		4,891,817
	senior note, 15.50%, 10/17/26		321,352,000		ARS		17,490,253
^a	Government of Argentina, FRN, 24.225%, (ARS Badlar + 2.00%), 4/03/22		20,588,000		ARS		1,104,001

							37,727,926

	Brazil 13.4%
	Letra Tesouro Nacional,
	Strip, 7/01/20		70,870	^b	BRL		17,416,450
	Strip, 7/01/21		74,890	^b	BRL		16,561,894
	Nota Do Tesouro Nacional,
	10.00%, 1/01/21		84,625	^b	BRL		26,298,194
	10.00%, 1/01/23		6,218	^b	BRL		1,899,702
	10.00%, 1/01/25		75,193	^b	BRL		22,647,538
	^cIndex Linked, 6.00%, 5/15/19		3,255	^b	BRL		3,116,270
	^cIndex Linked, 6.00%, 8/15/22		24,329	^b	BRL		23,332,078
	^cIndex Linked, 6.00%, 5/15/23		12,641	^b	BRL		12,194,983
	^cIndex Linked, 6.00%, 8/15/24		6,860	^b	BRL		6,633,792

							130,100,901

	Colombia 4.0%
	Government of Colombia,
	senior bond, 7.75%, 4/14/21		983,000,000		COP		348,495
	senior bond, 4.375%, 3/21/23		149,000,000		COP		47,439
	senior bond, 9.85%, 6/28/27		237,000,000		COP		99,591
	Titulos de Tesoreria,
	B, 7.75%, 9/18/30		44,355,700,000		COP		16,232,278
	B, 7.00%, 6/30/32		3,107,000,000		COP		1,057,118
	senior bond, B, 11.25%, 10/24/18		2,117,000,000		COP		746,739
	senior bond, B, 11.00%, 7/24/20		1,144,000,000		COP		435,434
	senior bond, B, 7.00%, 5/04/22		3,111,000,000		COP		1,097,114
	senior bond, B, 10.00%, 7/24/24		12,183,000,000		COP		4,922,447
	senior bond, B, 7.50%, 8/26/26		25,819,300,000		COP		9,241,714
	senior bond, B, 6.00%, 4/28/28		13,320,000,000		COP		4,292,469
	senior note, B, 7.00%, 9/11/19		1,258,000,000		COP		436,355

							38,957,193

	Ghana 1.7%
	Government of Ghana,
	24.75%, 3/01/21		50,000		GHS		13,182
	24.50%, 6/21/21		50,000		GHS		13,279
	24.75%, 7/19/21		50,000		GHS		13,386
	18.75%, 1/24/22		8,520,000		GHS		1,993,019
	19.75%, 3/25/24		8,520,000		GHS		2,090,313
	19.00%, 11/02/26		25,560,000		GHS		6,239,246
	senior bond, 19.75%, 3/15/32		25,560,000		GHS		6,206,160
	senior note, 21.50%, 3/09/20		160,000		GHS		38,288

							16,606,873

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TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS


	Principal Amount*				Value
Foreign Government and Agency Securities (continued)
India 9.4%
Government of India,
senior bond, 7.80%, 5/03/20		231,200,000		INR	$	3,697,208
senior bond, 8.20%, 2/15/22		282,000,000		INR		4,568,585
senior bond, 8.35%, 5/14/22		68,200,000		INR		1,111,797
senior bond, 8.08%, 8/02/22		549,000,000		INR		8,871,630
senior bond, 8.13%, 9/21/22		15,000,000		INR		242,336
senior bond, 9.15%, 11/14/24		387,000,000		INR		6,592,458
senior note, 7.28%, 6/03/19		9,000,000		INR		141,910
senior note, 8.27%, 6/09/20		476,000,000		INR		7,692,724
senior note, 8.12%, 12/10/20		252,600,000		INR		4,093,275
senior note, 7.80%, 4/11/21		697,700,000		INR		11,189,539
senior note, 8.79%, 11/08/21		225,000,000		INR		3,727,197
senior note, 8.15%, 6/11/22		540,000,000		INR		8,743,026
senior note, 6.84%, 12/19/22		111,000,000		INR		1,717,130
senior note, 7.16%, 5/20/23		42,900,000		INR		671,317
senior note, 8.83%, 11/25/23		966,400,000		INR		16,176,301
senior note, 7.68%, 12/15/23		730,000,000		INR		11,676,055

						90,912,488

Indonesia 9.0%
Government of Indonesia,
senior bond, FR31, 11.00%, 11/15/20		145,557,000,000		IDR		12,251,780
senior bond, FR34, 12.80%, 6/15/21		64,492,000,000		IDR		5,790,853
senior bond, FR35, 12.90%, 6/15/22		42,438,000,000		IDR		3,966,196
senior bond, FR36, 11.50%, 9/15/19		32,651,000,000		IDR		2,638,792
senior bond, FR39, 11.75%, 8/15/23		2,703,000,000		IDR		252,071
senior bond, FR42, 10.25%, 7/15/27		3,595,000,000		IDR		333,731
senior bond, FR43, 10.25%, 7/15/22		4,826,000,000		IDR		416,084
senior bond, FR44, 10.00%, 9/15/24		1,618,000,000		IDR		142,577
senior bond, FR46, 9.50%, 7/15/23		11,430,000,000		IDR		974,719
senior bond, FR47, 10.00%, 2/15/28		1,052,000,000		IDR		96,748
senior bond, FR48, 9.00%, 9/15/18		4,494,000,000		IDR		341,998
senior bond, FR52, 10.50%, 8/15/30		3,390,000,000		IDR		324,508
senior bond, FR53, 8.25%, 7/15/21		144,200,000,000		IDR		11,421,592
senior bond, FR56, 8.375%, 9/15/26		292,968,000,000		IDR		24,443,697
senior bond, FR61, 7.00%, 5/15/22		13,189,000,000		IDR		1,013,174
senior bond, FR63, 5.625%, 5/15/23		16,137,000,000		IDR		1,174,383
senior bond, FR64, 6.125%, 5/15/28		3,157,000,000		IDR		225,664
senior bond, FR70, 8.375%, 3/15/24		149,967,000,000		IDR		12,288,611
senior bond, FR71, 9.00%, 3/15/29		45,298,000,000		IDR		3,955,539
senior bond, FR73, 8.75%, 5/15/31		41,805,000,000		IDR		3,591,978
senior note, FR66, 5.25%, 5/15/18		5,394,000,000		IDR		398,293
senior note, FR69, 7.875%, 4/15/19		20,859,000,000		IDR		1,588,158

						87,631,146

Mexico 11.7%
Government of Mexico,
senior bond, M, 8.00%, 6/11/20		1,881,620	^d	MXN		9,658,297
senior bond, M, 6.50%, 6/10/21		6,789,460	^d	MXN		33,410,013
senior note, M, 4.75%, 6/14/18		3,477,400	^d	MXN		17,476,312
senior note, M, 5.00%, 12/11/19		3,370,500	^d	MXN		16,347,246
senior note, M 10, 8.50%, 12/13/18		7,037,900	^d	MXN		36,064,294

Annual Report

franklintempleton.com

TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS


		Principal Amount*				Value
	Foreign Government and Agency Securities (continued)
	Mexico (continued)
e	Mexican Udibonos,
	Index Linked, 4.00%, 6/13/19		137,563	^f	MXN	$	705,494
	Index Linked, 2.50%, 12/10/20		108,484	^f	MXN		537,433

							114,199,089

	Peru 3.3%
	Government of Peru, senior bond, 7.84%, 8/12/20		93,349,000		PEN		32,150,578

	Philippines 1.4%
	Government of the Philippines,
	senior note, 5.875%, 1/31/18		1,480,000		PHP		29,639
	senior note, 3.375%, 8/20/20		9,870,000		PHP		193,704
	senior note, 5-72, 2.125%, 5/23/18		82,557,000		PHP		1,646,029
	senior note, 7-51, 5.00%, 8/18/18		11,330,000		PHP		228,676
	senior note, 7-56, 3.875%, 11/22/19		578,780,000		PHP		11,553,255

							13,651,303

	South Africa 1.8%
	Government of South Africa,
	8.00%, 1/31/30		44,757,000		ZAR		3,311,234
	7.00%, 2/28/31		32,256,000		ZAR		2,175,492
	8.25%, 3/31/32		57,742,000		ZAR		4,272,434
	8.875%, 2/28/35		25,239,000		ZAR		1,926,819
	8.50%, 1/31/37		13,764,000		ZAR		1,002,909
	R186, 10.50%, 12/21/26		31,352,000		ZAR		2,832,143
	senior bond, 6.25%, 3/31/36		28,674,000		ZAR		1,674,487

							17,195,518

	South Korea 1.1%
	Korea Monetary Stabilization Bond, senior note, 1.72%, 12/02/18		2,500,000,000		KRW		2,340,120
	Korea Treasury Bond,
	senior note, 1.25%, 12/10/19		3,440,000,000		KRW		3,172,528
	senior note, 3.75%, 6/10/22		5,535,000,000		KRW		5,490,404

							11,003,052

g	Supranational 0.9%
	Inter-American Development Bank, senior bond, 7.50%, 12/05/24		185,000,000		MXN		9,098,189

	Ukraine 0.6%
h,i,j	Government of Ukraine, 144A, VRI, GDP Linked Security, 5/31/40		11,154,000				6,215,566

	Total Foreign Government and Agency Securities (Cost $611,496,956)						605,449,822


	Short Term Investments 28.0%
	Foreign Government and Agency Securities 8.3%
	Argentina 0.3%
	Argentine Bonos del Tesoro, 22.75%, 3/05/18		754,000		ARS		40,301
	Letras del Banco Central de la Republica Argentina, Strip, 2/21/18 - 7/18/18		67,657,000		ARS		3,248,164

							3,288,465

	Colombia 0.0%^†
	Colombian Tes Corto Plazo, Strip, 3/13/18		1,143,000,000		COP		379,079

	Mexico 4.3%
k	Mexico Treasury Bill, 3/01/18 - 12/06/18		85,114,530	^l	MXN		41,817,952

franklintempleton.com

Annual Report

TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS


		Principal Amount*			Value
	Short Term Investments (continued)
	Foreign Government and Agency Securities (continued)
	South Korea 3.7%
	Korea Monetary Stabilization Bond,
	^k senior note, 1/16/18		10,760,000,000	KRW	$	10,075,262
	senior note, 1.33%, 10/02/18		10,180,000,000	KRW		9,503,979
	senior note, 1.61%, 10/08/18		17,210,000,000	KRW		16,099,175

						35,678,416

	Total Foreign Government and Agency Securities (Cost $81,357,399)					81,163,912


	U.S. Government and Agency Securities 7.0%
	United States 7.0%
k	U.S. Treasury Bill,
	1/11/18		26,756,000			26,748,157
	1/18/18		41,244,000			41,221,385

	Total U.S. Government and Agency Securities (Cost $67,964,681)					67,969,542

	Total Investments before Money Market Funds (Cost $760,819,036)					754,583,276

		Shares
	Money Market Funds (Cost $123,219,957) 12.7%
	United States 12.7%
m,n	Institutional Fiduciary Trust Money Market Portfolio, 0.89%		123,219,957			123,219,957

	Total Investments (Cost $884,038,993) 90.2%					877,803,233
	Other Assets, less Liabilities 9.8%					94,988,128

	Net Assets 100.0%				$	972,791,361

^†Rounds to less than 0.1% of net assets.

^*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aThe coupon rate shown represents the rate at period end.

^bPrincipal amount is stated in 1,000 Brazilian Real Units.

^cRedemption price at maturity and coupon payment is adjusted for inflation. See Note 1(e).

^dPrincipal amount is stated in 100 Mexican Peso Units.

^ePrincipal amount of security is adjusted for inflation. See Note 1(e).

^fPrincipal amount is stated in 100 Unidad de Inversion Units.

^gA supranational organization is an entity formed by two or more central governments through international treaties.

^hSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees.

ⁱNon-income producing.

^jThe principal represents the notional amount. See Note 1(c) regarding value recovery instruments.

^kThe security was issued on a discount basis with no stated coupon rate.

^lPrincipal amount is stated in 10 Mexican Peso Units.

^mSee Note 3(c) regarding investments in affiliated management investment companies.

ⁿThe rate shown is the annualized seven-day yield at period end.

Annual Report

franklintempleton.com

TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS

At December 31, 2017, the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts


Currency	Counterparty^a		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Euro		BOFA		Sell		4,891,000		5,780,624			1/08/18	$	—	$	(91,299	)
Euro		JPHQ		Sell		893,000		1,055,977			1/08/18		—		(16,120	)
Euro		SCNY		Sell		1,325,806		1,566,778			1/08/18		—		(24,927	)
Euro		UBSW		Sell		13,525,000		15,989,526			1/08/18		—		(248,005	)
Euro		BZWS		Sell		4,094,000		4,841,626			1/10/18		—		(74,074	)
Euro		HSBK		Sell		13,422,375		15,873,971			1/10/18		—		(242,384	)
Euro		JPHQ		Sell		8,624,000		10,033,075			1/10/18		—		(321,832	)
South Korean Won		HSBK		Sell		13,796,869,757		12,216,647			1/10/18		—		(712,121	)
Euro		JPHQ		Sell		3,156,669		3,732,209			1/11/18		—		(58,269	)
Japanese Yen		BZWS		Sell		474,230,000		4,202,211			1/11/18		—		(8,995	)
Japanese Yen		GSCO		Sell		69,178,000		612,699			1/11/18		—		(1,608	)
Japanese Yen		JPHQ		Sell		557,950,000		4,947,286			1/11/18		—		(7,360	)
Euro		SCNY		Sell		6,873,000		8,089,109			1/16/18		—		(166,483	)
Indian Rupee		JPHQ		Buy		412,387,000		5,270,761	EUR		1/16/18		119,862		—
Japanese Yen		BZWS		Sell		518,550,000		4,579,536			1/16/18		—		(26,392	)
Japanese Yen		CITI		Sell		94,950,000		838,381			1/16/18		—		(4,995	)
Japanese Yen		HSBK		Sell		372,780,000		3,289,913			1/16/18		—		(21,239	)
Japanese Yen		JPHQ		Sell		154,420,000		1,372,817			1/16/18		1,209		—
South Korean Won		CITI		Sell		3,870,000,000		3,384,642			1/16/18		—		(242,247	)
Euro		BOFA		Sell		851,370		1,015,940			1/17/18		—		(6,759	)
Euro		GSCO		Sell		748,727		886,897			1/17/18		—		(12,503	)
Euro		JPHQ		Sell		2,765,652		3,300,900			1/17/18		—		(21,308	)
Euro		GSCO		Sell		3,105,000		3,684,828			1/18/18		—		(45,254	)
Euro		JPHQ		Sell		16,548,946		19,642,523			1/18/18		—		(237,964	)
Euro		MSCO		Sell		2,272,500		2,681,027			1/18/18		—		(48,960	)
Euro		UBSW		Sell		908,630		1,077,881			1/18/18		—		(13,670	)
Indonesian Rupiah		JPHQ		Buy		111,570,000,000		10,446,629	AUD		1/19/18		79,339		—
Euro		JPHQ		Sell		6,359,037		7,511,104			1/22/18		—		(130,028	)
Euro		UBSW		Sell		1,228,000		1,453,129			1/22/18		—		(22,457	)
Japanese Yen		SCNY		Sell		219,020,000		1,975,378			1/22/18		29,385		—
Euro		JPHQ		Sell		2,459,575		2,922,073			1/24/18		—		(33,769	)
Japanese Yen		BZWS		Sell		146,100,000		1,295,868			1/24/18		—		(2,361	)
Japanese Yen		DBAB		Sell		95,240,000		857,338			1/24/18		11,046		—
South Korean Won		HSBK		Sell		17,512,000,000		15,492,547			1/24/18		—		(921,722	)
Japanese Yen		CITI		Sell		178,564,000		1,615,335			1/25/18		28,555		—
Japanese Yen		JPHQ		Sell		275,000,000		2,487,079			1/25/18		43,335		—
Euro		GSCO		Sell		1,800,000		2,134,224			1/29/18		—		(29,626	)
Japanese Yen		DBAB		Sell		631,276,974		5,696,623			1/29/18		85,780		—
Japanese Yen		JPHQ		Sell		95,800,000		866,721			1/29/18		15,243		—
Indian Rupee		HSBK		Buy		610,744,000		7,846,932	EUR		1/30/18		109,505		—
Euro		BOFA		Sell		15,982,600		18,640,506			1/31/18		—		(574,903	)
Euro		BZWS		Sell		4,351,556		5,212,185			1/31/18		—		(19,563	)
Euro		SCNY		Sell		4,300,311		5,131,347			1/31/18		—		(38,791	)
Japanese Yen		HSBK		Sell		817,266,455		7,386,050			1/31/18		121,456		—
Euro		GSCO		Sell		3,568,500		4,172,647			2/02/18		—		(118,125	)
Euro		JPHQ		Sell		33,330		39,003			2/02/18		—		(1,073	)
Euro		BOFA		Sell		1,677,316		1,966,955			2/06/18		—		(50,295	)
Japanese Yen		CITI		Sell		152,232,000		1,380,964			2/09/18		27,236		—
Euro		HSBK		Sell		7,662,000		8,932,934			2/12/18		—		(284,921	)
Euro		JPHQ		Sell		3,156,665		3,739,244			2/12/18		—		(58,418	)
Japanese Yen		CITI		Sell		613,483,000		5,588,677			2/13/18		132,263		—
Euro		CITI		Sell		1,417,000		1,660,001			2/14/18		—		(44,923	)
Euro		JPHQ		Sell		26,790,000		31,410,873			2/14/18		—		(822,670	)
Japanese Yen		CITI		Sell		111,910,667		991,272			2/14/18		—		(4,124	)
Australian Dollar		JPHQ		Sell		7,979,000		6,092,964			2/15/18		—		(131,917	)

franklintempleton.com

Annual Report

TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS

Forward Exchange Contracts (continued)


Currency	Counterparty^a		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Euro		GSCO		Sell		1,183,000		1,388,073			2/15/18	$	—	$	(35,382	)
Japanese Yen		JPHQ		Sell		100,450,000		929,929			2/15/18		36,430		—
Euro		BOFA		Sell		12,531,000		14,810,953			2/16/18		—		(267,913	)
Japanese Yen		GSCO		Sell		195,642,140		1,804,334			2/16/18		64,025		—
Japanese Yen		JPHQ		Sell		1,893,639,000		16,973,415			2/16/18		128,793		—
Euro		GSCO		Sell		3,855,546		4,570,496			2/20/18		—		(69,996	)
Euro		JPHQ		Sell		6,359,037		7,523,885			2/20/18		—		(129,781	)
Euro		SCNY		Sell		3,955,000		4,695,712			2/20/18		—		(64,482	)
Euro		UBSW		Sell		10,749,628		12,766,631			2/20/18		—		(171,503	)
Japanese Yen		DBAB		Sell		687,444,000		6,272,013			2/20/18		155,829		—
South Korean Won		CITI		Sell		6,847,000,000		6,125,666			2/20/18		—		(294,208	)
South Korean Won		CITI		Sell		16,347,000,000		14,392,113			2/21/18		—		(935,307	)
Euro		JPHQ		Sell		11,085,000		13,101,251			2/22/18		—		(241,995	)
Euro		UBSW		Sell		370,478		438,531			2/22/18		—		(7,421	)
Japanese Yen		HSBK		Sell		1,286,140,000		11,821,140			2/22/18		377,320		—
Japanese Yen		JPHQ		Sell		926,943,000		8,557,292			2/22/18		309,536		—
Japanese Yen		DBAB		Sell		303,441,000		2,801,080			2/26/18		100,630		—
Mexican Peso		CITI		Buy		62,000,000		2,939,085			2/26/18		179,811		—
Mexican Peso		CITI		Sell		62,000,000		3,123,347			2/26/18		4,451		—
Japanese Yen		HSBK		Sell		796,744,000		7,207,092			2/27/18		116,206		—
Euro		BOFA		Sell		1,464,790		1,752,475			2/28/18		—		(11,324	)
Euro		SCNY		Sell		4,385,601		5,241,670			2/28/18		—		(39,167	)
Indian Rupee		DBAB		Buy		1,151,765,600		14,896,166	EUR		2/28/18		5,672		—
Japanese Yen		BZWS		Sell		726,500,000		6,739,707			2/28/18		273,574		—
Japanese Yen		DBAB		Sell		509,728,000		4,711,981			2/28/18		175,203		—
Japanese Yen		JPHQ		Sell		1,555,114,000		14,312,523			2/28/18		471,402		—
Euro		BOFA		Sell		1,471,272		1,750,034			3/01/18		—		(21,687	)
Japanese Yen		HSBK		Sell		980,688,000		8,979,837			3/01/18		250,782		—
Euro		GSCO		Sell		3,568,500		4,263,751			3/05/18		—		(34,613	)
Japanese Yen		JPHQ		Sell		416,700,000		3,735,595			3/05/18		25,634		—
Japanese Yen		HSBK		Sell		196,900,000		1,754,433			3/06/18		1,284		—
Euro		BOFA		Sell		1,677,316		1,994,245			3/07/18		—		(26,400	)
Australian Dollar		CITI		Sell		5,099,600		3,829,307			3/09/18		—		(148,840	)
Euro		JPHQ		Sell		3,156,665		3,745,352			3/12/18		—		(58,709	)
Japanese Yen		HSBK		Sell		945,842,800		8,714,995			3/12/18		290,261		—
Australian Dollar		CITI		Sell		16,864,000		12,524,134			3/13/18		—		(631,101	)
Australian Dollar		JPHQ		Sell		25,286,000		18,711,640			3/13/18		—		(1,013,412	)
Japanese Yen		DBAB		Sell		167,200,000		1,549,124			3/13/18		59,759		—
South Korean Won		DBAB		Sell		5,874,000,000		5,398,401			3/14/18		—		(110,239	)
Euro		JPHQ		Sell		6,359,037		7,522,772			3/15/18		—		(141,954	)
Australian Dollar		JPHQ		Sell		8,540,000		6,365,289			3/16/18		—		(296,500	)
Euro		BOFA		Sell		12,531,000		14,812,895			3/16/18		—		(292,074	)
Euro		GSCO		Sell		748,727		888,484			3/19/18		—		(14,217	)
Euro		MSCO		Sell		2,272,500		2,690,435			3/19/18		—		(49,399	)
Japanese Yen		BZWS		Sell		132,990,000		1,213,231			3/19/18		28,150		—
South Korean Won		CITI		Sell		2,579,000,000		2,281,392			3/20/18		—		(137,308	)
Japanese Yen		CITI		Sell		220,552,000		1,995,088			3/23/18		29,243		—
Japanese Yen		BZWS		Sell		125,158,380		1,133,496			3/26/18		17,711		—
Japanese Yen		MSCO		Sell		311,200,000		2,817,309			3/26/18		42,967		—
South Korean Won		HSBK		Sell		6,768,130,243		6,000,115			3/27/18		—		(347,685	)
Japanese Yen		JPHQ		Sell		130,931,000		1,168,495			3/30/18		955		—
Japanese Yen		JPHQ		Sell		557,950,000		4,996,798			4/06/18		19,317		—
Japanese Yen		BZWS		Sell		192,016,500		1,720,919			4/11/18		7,414		—
Japanese Yen		HSBK		Sell		555,000,000		4,968,666			4/11/18		15,992		—
Japanese Yen		CITI		Sell		146,000,000		1,344,197			4/13/18		41,173		—
Japanese Yen		DBAB		Sell		277,200,000		2,553,215			4/13/18		79,253		—
Mexican Peso		CITI		Buy		350,137,330		15,738,859	EUR		4/27/18		—		(1,593,956	)
Mexican Peso		DBAB		Buy		129,747,300		5,830,800	EUR		4/27/18		—		(588,953	)

Annual Report

franklintempleton.com

TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS

Forward Exchange Contracts (continued)


Currency	Counterparty^a		Type		Quantity		Contract Amount*		Settlement Date		Unrealized Appreciation		Unrealized Depreciation

OTC Forward Exchange Contracts (continued)
Mexican Peso		JPHQ		Buy		39,025,000	1,666,169	EUR		4/27/18	$	—	$	(71,252	)
Mexican Peso		MSCO		Buy		117,000,000	4,995,730	EUR		4/27/18		—		(214,134	)
South Korean Won		HSBK		Sell		35,000,000,000	31,091,765			4/30/18		—		(1,750,430	)
Japanese Yen		CITI		Sell		104,080,747	919,949			5/09/18		—		(10,429	)
Japanese Yen		CITI		Sell		111,910,666	996,369			5/14/18		—		(4,306	)
Japanese Yen		JPHQ		Sell		102,242,000	911,329			5/14/18		—		(2,891	)
Australian Dollar		JPHQ		Sell		7,979,000	6,090,012			5/15/18		—		(133,502	)
Japanese Yen		GSCO		Sell		203,561,000	1,812,525			5/15/18		—		(7,774	)
Japanese Yen		HSBK		Sell		286,780,000	2,563,970			5/15/18		—		(497	)
Japanese Yen		SCNY		Sell		152,158,000	1,358,808			5/15/18		—		(1,831	)
Mexican Peso		CITI		Buy		424,000,000	2,412,093,600	JPY		5/15/18		—		(529,475	)
South Korean Won		CITI		Sell		5,173,000,000	4,646,546			5/15/18		—		(208,593	)
Japanese Yen		CITI		Sell		152,157,000	1,354,180			5/16/18		—		(6,533	)
Japanese Yen		JPHQ		Sell		1,900,700,000	16,929,572			5/16/18		—		(68,053	)
Japanese Yen		SCNY		Sell		103,657,300	922,193			5/16/18		—		(4,796	)
South Korean Won		HSBK		Sell		7,321,000,000	6,549,765			5/17/18		—		(321,589	)
Japanese Yen		BOFA		Sell		705,633,500	6,333,664			5/18/18		22,536		—
Japanese Yen		CITI		Sell		1,131,241,500	10,147,802			5/18/18		30,072		—
South Korean Won		DBAB		Sell		5,870,000,000	5,284,004			5/18/18		—		(225,549	)
Japanese Yen		BOFA		Sell		704,526,000	6,417,179			5/21/18		114,801		—
Japanese Yen		CITI		Sell		1,131,241,600	10,111,838			5/21/18		—		(7,749	)
Japanese Yen		DBAB		Sell		592,373,000	5,300,403			5/21/18		1,296		—
Japanese Yen		HSBK		Sell		707,007,200	6,453,740			5/21/18		129,166		—
Indonesian Rupiah		JPHQ		Buy		34,485,000,000	3,289,926	AUD		5/22/18		—		(46,901	)
Japanese Yen		BOFA		Sell		706,440,000	6,473,974			5/22/18		154,088		—
Japanese Yen		CITI		Sell		307,053,000	2,761,968			5/22/18		15,040		—
Japanese Yen		JPHQ		Sell		532,106,000	4,876,450			5/22/18		116,174		—
Japanese Yen		SCNY		Sell		696,345,000	6,262,726			5/24/18		32,389		—
Japanese Yen		BOFA		Sell		860,890,000	7,883,608			5/25/18		180,584		—
Japanese Yen		HSBK		Sell		154,574,000	1,391,055			5/29/18		7,628		—
Australian Dollar		GSCO		Sell		26,618,090	20,134,722			6/05/18		—		(626,518	)
Japanese Yen		CITI		Sell		153,700,000	1,383,849			6/08/18		7,403		—
Japanese Yen		HSBK		Sell		115,050,000	1,031,677			6/11/18		1,167		—
Japanese Yen		CITI		Sell		496,800,000	4,424,692			6/12/18		—		(25,445	)
Japanese Yen		CITI		Sell		230,997,000	2,059,164			6/13/18		—		(10,142	)
Japanese Yen		HSBK		Sell		505,050,000	4,501,738			6/13/18		—		(22,577	)
Japanese Yen		JPHQ		Sell		467,930,000	4,171,484			6/13/18		—		(20,304	)
Japanese Yen		JPHQ		Sell		197,300,000	1,762,394			6/15/18		—		(5,266	)
Japanese Yen		HSBK		Sell		187,120,000	1,743,083			6/18/18		66,321		—
Japanese Yen		MSCO		Sell		245,000,000	2,190,199			6/18/18		—		(5,221	)
Japanese Yen		DBAB		Sell		186,830,000	1,722,634			6/19/18		48,368		—
Japanese Yen		JPHQ		Sell		1,012,400,000	9,114,891			6/19/18		42,325		—
Japanese Yen		CITI		Sell		207,460,000	1,899,295			6/20/18		40,040		—
Japanese Yen		DBAB		Sell		187,160,000	1,706,730			6/22/18		29,198		—
Japanese Yen		CITI		Sell		111,910,667	1,002,110			8/14/18		—		(4,437	)
Japanese Yen		HSBK		Sell		115,050,000	1,037,880			9/11/18		1,183		—
Mexican Peso		HSBK		Buy		104,380,700	4,282,285	EUR		10/29/18		—		(222,137	)

Total Forward Exchange Contracts											$	5,152,770	$	(18,278,311	)

Net unrealized appreciation (depreciation)													$	(13,125,541	)

* In U.S. dollars unless otherwise indicated.

^a May be comprised of multiple contracts with the same counterparty, currency and settlement date.

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Annual Report

TEMPLETON GLOBAL INCOME FUND

STATEMENT OF INVESTMENTS

At December 31, 2017, the Fund had the following interest rate swap contracts outstanding. See Note 1(c).

Interest Rate Swap Contracts

Description

Payment
Frequency

Maturity
Date

Notional
Amount

Value/
Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.914%

Semi-Annual

1/22/25

35,260,000

704,284

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.970%

Semi-Annual

1/23/25

44,070,000

709,924

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.973%

Semi-Annual

1/27/25

26,010,000

413,803

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.937%

Semi-Annual

1/29/25

6,500,000

119,851

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.942%

Semi-Annual

1/30/25

5,500,000

99,578

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.817%

Semi-Annual

2/03/25

8,680,000

234,387

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.978%

Semi-Annual

3/27/25

800,000

14,052

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 1.985%

Semi-Annual

3/27/25

800,000

13,607

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 2.449%

Semi-Annual

7/02/25

6,340,000

(112,356

)

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 2.310%

Semi-Annual

7/29/25

16,220,000

(108,765

)

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 2.752%

Semi-Annual

7/29/45

23,960,000

(1,274,834

)

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 2.378%

Semi-Annual

11/18/46

56,100,000

1,873,936

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 2.794%

Semi-Annual

3/13/47

10,100,000

(632,243

)

Receive Floating 3-month USD LIBOR

Quarterly

Pay Fixed 2.537%

Semi-Annual

4/13/47

12,300,000

(25,877

)

Total Interest Rate Swap Contracts

2,029,347

See Note 9 regarding other derivative information.

See Abbreviations on page 29.

Annual Report | The accompanying notes are an integral part of these financial statements.

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TEMPLETON GLOBAL INCOME FUND

Financial Statements

Statement of Assets and Liabilities

December 31, 2017


Assets:
Investments in securities:
Cost - Unaffiliated issuers	$	760,819,036
Cost - Non-controlled affiliates (Note 3c)		123,219,957

Value - Unaffiliated issuers	$	754,583,276
Value - Non-controlled affiliates (Note 3c)		123,219,957
Foreign currency, at value (cost $916,710)		919,143
Receivables:
Investment securities sold		70,650,876
Interest		10,734,477
Deposits with brokers for:
OTC derivative contracts		10,360,000
Centrally cleared swap contracts		18,502,741
Unrealized appreciation on OTC forward exchange contracts		5,152,770
Other assets		874

Total assets		994,124,114

Liabilities:
Payables:
Management fees		484,323
Variation margin on centrally cleared swap contracts		463,980
Unrealized depreciation on OTC forward exchange contracts		18,278,311
Deferred tax.		1,557,838
Accrued expenses and other liabilities.		548,301


Total liabilities		21,332,753


Net assets, at value	$	972,791,361

Net assets consist of:
Paid-in capital	$	1,013,251,661
Distributions in excess of net investment income		(16,535,085	)
Net unrealized appreciation (depreciation)		(18,727,837	)
Accumulated net realized gain (loss)		(5,197,378	)


Net assets, at value	$	972,791,361

Shares outstanding.		134,144,158

Net asset value per share	$	7.25

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The accompanying notes are an integral part of these financial statements. | Annual Report

TEMPLETON GLOBAL INCOME FUND

FINANCIAL STATEMENTS

Statement of Operations

for the year ended December 31, 2017


Investment income:
Dividends:
Non-controlled affiliates (Note 3c)	$	835,537
Interest: (net of foreign taxes)~
Unaffiliated issuers		54,536,581

Total investment income		55,372,118

Expenses:
Management fees (Note 3a)		6,370,145
Transfer agent fees		187,158
Custodian fees (Note 4)		489,678
Reports to shareholders		83,204
Registration and filing fees		131,342
Professional fees		102,818
Trustees’ fees and expenses		98,667
Other		139,074

Total expenses		7,602,086
Expense reductions (Note 4)		(84,742	)
Expenses waived/paid by affiliates (Note 3c)		(573,988	)

Net expenses		6,943,356

Net investment income		48,428,762

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:^#
Unaffiliated issuers		(11,917,349	)
Foreign currency transactions		(149,773	)
Forward exchange contracts		(158,479	)
Swap contracts		(2,618,737	)

Net realized gain (loss)		(14,844,338	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		50,001,624
Translation of other assets and liabilities denominated in foreign currencies		203,127
Forward exchange contracts		(55,428,306	)
Swap contracts		(974,903	)
Change in deferred taxes on unrealized appreciation		(504,022	)

Net change in unrealized appreciation (depreciation)		(6,702,480	)

Net realized and unrealized gain (loss)		(21,546,818	)

Net increase (decrease) in net assets resulting from operations	$	26,881,944


^~Foreign taxes withheld on interest	$	1,880,365
^#Net of foreign taxes	$	52,022

Annual Report | The accompanying notes are an integral part of these financial statements.

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TEMPLETON GLOBAL INCOME FUND

FINANCIAL STATEMENTS

Statements of Changes in Net Assets


	Year Ended December 31,						Year Ended
	2017			2016^a			August 31, 2016

Increase (decrease) in net assets:
Operations:
Net investment income	$	48,428,762		$	13,809,738			$ 42,182,613
Net realized gain (loss)		(14,844,338	)		(37,154,134)			(73,664,259	)
Net change in unrealized appreciation (depreciation)		(6,702,480	)		69,922,563			33,321,665

Net increase (decrease) in net assets resulting from operations		26,881,944			46,578,167			1,840,019

Distributions to shareholders from:
Net investment income and net foreign currency gains		(38,445,716	)		—			(14,394,453	)
Net realized gains		—			—			(2,405,934	)
Tax return of capital		—			(13,414,416)			(23,442,860	)

Total distributions to shareholders		(38,445,716	)		(13,414,416)			(40,243,247	)

Net increase (decrease) in net assets		(11,563,772	)		33,163,751			(38,403,228	)
Net assets:
Beginning of year		984,355,133			951,191,382			989,594,610

End of year	$	972,791,361		$	984,355,133			$951,191,382

Undistributed net investment income included in net assets:
End of year	$	—		$	—			$ 9,720,435

Distributions in excess of net investment income included in net assets:
End of year	$	(16,535,085	)	$	(53,139,550	)		$ —

^aFor the period September 1, 2016 to December 31, 2016.

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The accompanying notes are an integral part of these financial statements. | Annual Report

TEMPLETON GLOBAL INCOME FUND

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Templeton Global Income Fund (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).

Subsequent to August 31, 2016, the Fund’s fiscal year end changed to December 31.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The VC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Debt securities generally trade in the over-the-counter (OTC) market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate

the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

Investments in open-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Fund’s pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Fund’s net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction

Annual Report

franklintempleton.com

TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

The Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counter-parties. The Fund attempts to reduce its exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives

Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.

Collateral requirements differ by type of derivative. Collateral or initial margin requirements are set by the broker or exchange clearing house for exchange traded and centrally cleared derivatives. Initial margin deposited is held at the exchange and can be in the form of cash and/or securities. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund for OTC derivatives, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Fund’s investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

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Annual Report

TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

The Fund entered into interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized.

The Fund invests in value recovery instruments (VRI) primarily to gain exposure to economic growth. Periodic payments from VRI are dependent on established benchmarks for underlying variables. VRI has a notional amount, which is used to calculate amounts of payments to holders. Payments are recorded upon receipt as realized gains in the Statement of Operations. The risks of investing in VRI include growth risk, liquidity, and the potential loss of investment.

See Note 9 regarding other derivative information.

d. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in

which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of December 31, 2017, the Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

e. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income is recorded on the ex-dividend date. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Inflation-indexed bonds are adjusted for inflation through periodic increases or decreases in the security’s interest accruals, face amount, or principal redemption value, by amounts corresponding to the rate of inflation as measured by an index. Any increase or decrease in the face amount or principal redemption value will be included as interest income in the Statement of Operations.

Annual Report

franklintempleton.com

TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

f. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

g. Guarantees and Indemnifications

Under the Fund’s organizational documents, its officers and trustees are indemnified by the Fund against certain liabilities arising out of the performance of their duties to the Fund.

Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. Currently, the Fund expects the risk of loss to be remote.

2. Shares of Beneficial Interest

At December 31, 2017, there were an unlimited number of shares authorized (without par value). During the years ended

December 31, 2017, December 31, 2016 and August 31, 2016 there were no shares issued; all reinvested distributions were satisfied with previously issued shares purchased in the open market.

Under the Board approved open-market share repurchase program, the Fund may purchase, from time to time, Fund shares in open-market transactions, at the discretion of management. Since the inception of the program, the Fund has repurchased a total of 11,210,400 shares. During the years ended December 31, 2017, December 31, 2016 and August 31, 2016 there were no shares repurchased.

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton Investments. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:


Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager

a. Management Fees

The Fund pays an investment management fee to Advisers based on the average daily net assets of the Fund as follows:


Annualized Fee Rate		Net Assets
0.700%		Up to and including $200 million
0.635%		Over $200 million, up to and including $700 million
0.600%		Over $700 million, up to and including $1 billion
0.580%		Over $1 billion, up to and including $5 billion
0.560%		Over $5 billion, up to and including $10 billion
0.540%		Over $10 billion, up to and including $15 billion
0.520%		Over $15 billion, up to and including $20 billion
0.500%		In excess of $20 billion


franklintempleton.com		Annual Report			23

TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

a. Management Fees (continued)

For the year ended December 31, 2017, the gross effective investment management fee rate was 0.637% of the Fund’s average daily net assets.

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.

c. Investments in Affiliated Management Investment Companies

The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. Prior to September 1, 2013, the waiver was accounted for as a reduction to management fees. During the year ended December 31, 2017, the Fund held investments in affiliated management investment companies as follows:


	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year		Dividend Income		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 0.89%		143,876,895		294,244,652		(314,901,590	)		123,219,957	$	123,219,957	$	835,537		$ —		$ —

4. Expense Offset Arrangement

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. During the year ended December 31, 2017, the custodian fees were reduced as noted in the Statement of Operations.

5. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At December 31, 2017, the Fund had short-term capital loss carryforwards of $5,197,379.

For tax purposes, the Fund may elect to defer any portion of a late-year ordinary loss to the first day of the following fiscal year. At December 31, 2017, the Fund deferred late-year ordinary losses of $9,286,921.

The tax character of distributions paid during the years ended December 31, 2017, December 31, 2016 and August 31, 2016, was as follows:


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TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS


	December 31,				August 31,
	2017		2016		2016
Distributions paid from:
Ordinary income	$	38,445,716	$	—	$	14,394,453
Long term capital gain		—		—		2,405,934

	$	38,445,716	$	—	$	16,800,387

Return of capital		—		13,414,421		23,442,860

	$	38,445,716	$	13,414,421	$	40,243,247

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), for income tax purposes were as follows:


Cost of investments	$	892,144,544

Unrealized appreciation	$	57,258,669
Unrealized depreciation		(81,460,685)

Net unrealized appreciation (depreciation)	$	(24,202,016)

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of foreign currency transactions.

6. Investment Transactions

Purchases and sales of investments (excluding short term securities) for the year ended December 31, 2017, aggregated $306,266,008 and $435,444,078, respectively.

7. Credit Risk

At December 31, 2017, the Fund had 24.1% of its portfolio invested in high yield securities rated below investment grade and unrated securities, if any. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

8. Concentration of Risk

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities.


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TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

9. Other Derivative Information

At December 31, 2017, the Fund’s investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:

Asset Derivatives

Liability Derivatives

Derivative Contracts
Not Accounted for as
Hedging Instruments

Statement of

Assets and Liabilities
Location

Fair Value

Statement of
Assets and Liabilities
Location

Fair Value

Interest rate contracts

Variation margin on centrally

cleared swap contracts

4,183,422

Variation margin on centrally cleared swap contracts

2,154,075

Foreign exchange contracts

Unrealized appreciation on OTC forward exchange
contracts

5,152,770

Unrealized depreciation on OTC forward exchange
contracts

18,278,311

Value recovery instruments

Investments in securities, at value

6,215,566

Totals

15,551,758

20,432,386

^aThis amount reflects the cumulative appreciation (depreciation) of centrally cleared swap contracts as reported in the Statement of Investments. Only the variation margin receivable/payable at year end is separately reported within the Statement of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.

^bVRI are included in investments in securities, at value in the Statement of Assets and Liabilities.

For the year ended December 31, 2017, the effect of derivative contracts in the Fund’s Statement of Operations was as follows:

Derivative Contracts
Not Accounted for as
Hedging Instruments

Statement of
Operations Location

Net Realized
Gain (Loss) for
the Year

Statement of
Operations Location

Net Change in
Unrealized
Appreciation
(Depreciation)
for the Year

Net realized gain (loss) from:

Net change in unrealized appreciation (depreciation) on:

Interest rate contracts

Swap contracts

$(2,618,737)

Swap contracts

$ (974,903)

Foreign exchange contracts

Forward exchange contracts

(158,479)

Forward exchange contracts

(55,428,306)

Value recovery instruments

Investments

—

Investments

2,813,596^a

Totals

$(2,777,216)

$(53,589,613)

^aVRI are included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations.

For the year ended December 31, 2017, the average month end notional amount of swap contracts represented 246,524,615. The average month end contract value and fair value of forward exchange contracts and VRI, was $960,200,720 and $4,851,902, respectively.

At December 31, 2017, the Fund’s OTC derivative assets and liabilities are as follows:


	Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
	Assets^a	Liabilities^a
Derivatives
Forward exchange contracts	$5,152,770	$18,278,311

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.


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TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

At December 31, 2017, the Fund’s OTC derivative assets, which may be offset against the Fund’s OTC derivative liabilities and collateral received from the counterparty, are as follows:


			Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Assets Presented in the Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a,b			Cash Collateral Received		Net Amount (Not less than zero)
Counterparty
BOFA		$ 472,009		$ (472,009	)		$ —		$	—	$	—
BZWS		326,849		(131,385	)		(195,464	)		—		—
CITI		535,287		(535,287	)		—			—		—
DBAB		752,034		(752,034	)		—			—		—
GSCO		64,025		(64,025	)		—			—		—
HSBK		1,488,271		(1,488,271	)		—			—		—
JPHQ		1,409,554		(1,409,554	)		—			—		—
MSCO		42,967		(42,967	)		—			—		—
SCNY		61,774		(61,774	)		—			—		—
UBSW		—		—			—			—		—

Total		$5,152,770		$(4,957,306	)		$(195,464	)	$	—	$	—

At December 31, 2017, the Fund’s OTC derivative liabilities, which may be offset against the Fund’s OTC derivative assets and collateral pledged to the counterparty, are as follows:


			Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledged		Cash Collateral Pledged			Net Amount (Not less than zero)
Counterparty
BOFA		$ 1,342,654		$ (472,009	)		$ —	$	(540,000	)	$	330,645
BZWS		131,385		(131,385	)		—		—			—
CITI		4,844,118		(535,287	)		—		(4,070,000	)		238,831
DBAB		924,741		(752,034	)		—		—			172,707
GSCO		995,616		(64,025	)		—		(800,000	)		131,591
HSBK		4,847,302		(1,488,271	)		—		(2,810,000	)		549,031
JPHQ		4,071,248		(1,409,554	)		—		(1,830,000	)		831,694
MSCO		317,714		(42,967	)		—		—			274,747
SCNY		340,477		(61,774	)		—		—			278,703
UBSW		463,056		—			—		(310,000	)		153,056

Total		$18,278,311		$(4,957,306	)		$ —	$	(10,360,000	)	$	2,961,005

^aAt December 31, 2017, the Fund received U.S. Treasury Bonds and Notes as collateral for derivatives.

^bIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateral-ization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

See Note 1(c) regarding derivative financial instruments.

See Abbreviations on page 29.


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TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

10. Fair Value Measurements

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

A summary of inputs used as of December 31, 2017, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:


	Level 1		Level 2		Level 3		Total

Assets:
Investments in Securities:^a
Foreign Government and Agency Securities	$	—	$	605,449,822	$	—	$	605,449,822
Short Term Investments		191,189,499		81,163,912		—		272,353,411

Total Investments in Securities	$	191,189,499	$	686,613,734	$	—	$	877,803,233

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	5,152,770	$	—	$	5,152,770
Swap Contracts		—		4,183,422		—		4,183,422

Total Other Financial Instruments	$	—	$	9,336,192	$	—	$	9,336,192


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	18,278,311	$	—	$	18,278,311
Swap Contracts		—		2,154,075		—		2,154,075

Total Other Financial Instruments	$	—	$	20,432,386	$	—	$	20,432,386

^aFor detailed categories, see the accompanying Statement of Investments.

11. Subsequent Events

The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.


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TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

Abbreviations


Counterparty		Currency		Selected Portfolio
BOFA	Bank of America Corp.	ARS	Argentine Peso	BADLAR	Argentina Deposit Rates Badlar Private
BZWS	Barclays Bank PLC	AUD	Australian Dollar		Banks ARS
CITI	Citigroup, Inc.	BRL	Brazilian Real	FRN	Floating Rate Note
DBAB	Deutsche Bank AG	COP	Colombian Peso	GDP	Gross Domestic Product
GSCO	The Goldman Sachs Group, Inc.	EUR	Euro	LIBOR	London InterBank Offered Rate
HSBK	HSBC Bank PLC	GHS	Ghanaian Cedi	VRI	Value Recovery Instruments
JPHQ	JP Morgan Chase & Co.	IDR	Indonesian Rupiah
MSCO	Morgan Stanley	INR	Indian Rupee
SCNY	Standard Chartered Bank	JPY	Japanese Yen
UBSW	UBS AG	KRW	South Korean Won
		MXN	Mexican Peso
		PEN	Peruvian Nuevo Sol
		PHP	Philippine Peso
		USD	United States Dollar
		ZAR	South African Rand


franklintempleton.com		Annual Report			29

TEMPLETON GLOBAL INCOME FUND

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Templeton Global Income Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Templeton Global Income Fund (the “Fund”) as of December 31, 2017, the related statement of operations for the year ended December 31, 2017, the statements of changes in net assets for the year ended December 31, 2017, the period September 1, 2016 through December 31, 2016, and the year ended August 31, 2016, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, the results of its operations for the year ended December 31, 2017, the changes in its net assets for the year ended December 31, 2017, the period September 1, 2016 through December 31, 2016, and the year ended August 31, 2016, and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

February 20, 2018

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.


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TEMPLETON GLOBAL INCOME FUND

Tax Information (unaudited)

At December 31, 2016, more than 50% of the Fund’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. As shown in the table below, the Fund hereby reports to shareholders the foreign source income and foreign taxes paid, pursuant to Section 853 of the Internal Revenue Code (Code). This written statement will allow shareholders of record on January 13, 2017, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.


Foreign Tax Paid	Foreign Source	Foreign Source Qualified
Per Share	Income Per Share	Dividends Per Share
$0.0040	$0.0942	$ —

Foreign Tax Paid Per Share (Column 1) is the amount per share available to you, as a tax credit (assuming you held your shares in the Fund for a minimum of 16 days during the 31-day period beginning 15 days before the ex-dividend date of the Fund’s distribution to which the foreign taxes relate), or, as a tax deduction.

Foreign Source Income Per Share (Column 2) is the amount per share of income dividends attributable to foreign securities held by the Fund, plus any foreign taxes withheld on these dividends. The amounts reported include foreign source qualified dividends that have not been adjusted for the rate differential applicable to such dividend income.¹

Foreign Source Qualified Dividends Per Share (Column 3) is the amount per share of foreign source qualified dividends, plus any foreign taxes withheld on these dividends. These amounts represent the portion of the Foreign Source Income reported to you in column 2 that were derived from qualified foreign securities held by the Fund.¹

By mid-February 2018, shareholders will receive Form 1099-DIV which will include their share of taxes paid and foreign source income distributed during the calendar year 2017. The Foreign Source Income reported on Form 1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their 2017 individual income tax returns.

At December 31, 2017, more than 50% of the Fund’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. The Fund elects to treat foreign taxes paid as allowed under Section 853 of the Code. This election will allow shareholders of record as of the first distribution in 2018, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

¹Qualified dividends are taxed at reduced long term capital gains tax rates. In determining the amount of foreign tax credit that may be applied against the U.S. tax liability of individuals receiving foreign source qualified dividends, adjustments may be required to the foreign tax credit limitation calculation to reflect the rate differential applicable to such dividend income. The rules however permit certain individuals to elect not to apply the rate differential adjustments for capital gains and/or dividends for any taxable year. Please consult your tax advisor and the instructions to Form 1116 for more information.


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TEMPLETON GLOBAL INCOME FUND

Annual Meeting of Shareholders, March 1, 2017 (unaudited)

The Annual Meeting of Shareholders of Templeton Global Income Fund (the “Fund”) was held at the Fund’s offices, 300 S.E. 2nd Street, Fort Lauderdale, Florida, on March 1, 2017. The purpose of the meeting was to elect four Trustees of the Fund and to ratify the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for the fiscal year ending December 31, 2017. At the meeting, the following persons were elected by the shareholders to serve as Trustees of the Fund: Mary C. Choksi, Edith E. Holiday, J. Michael Luttig and Constantine D. Tseretopoulos.* Shareholders also ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for the fiscal year ending December 31, 2017. No other business was transacted at the meeting with respect to the Fund.

The results of the voting at the Annual Meeting are as follows:

1. Election of four Trustees:


		% of			% of
		Outstanding	% of Shares		Outstanding	% of Shares
Term Expiring 2020	For	Shares	Present	Withheld	Shares	Present
Edith E. Holiday	113,560,092	84.66%	97.66%	2,716,330	2.02%	2.34%
J. Michael Luttig	113,635,953	84.71%	97.73%	2,640,469	1.97%	2.27%
Constantine D. Tseretopoulos	113,546,111	84.64%	97.65%	2,730,311	2.04%	2.35%

		% of			% of
		Outstanding	% of Shares		Outstanding	% of Shares
Term Expiring 2019	For	Shares	Present	Withheld	Shares	Present
Mary C. Choksi	113,571,961	84.66%	97.67%	2,704,461	2.02%	2.33%
There were no broker non-votes received with respect to this item. 2. Ratification of the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for the fiscal year ending December 31, 2017:

		% of
	Shares	Outstanding	% of Shares
	Voted	Shares	Present
For	113,799,107	84.83%	97.87%
Against	1,104,845	0.82%	0.95%
Abstain	1,372,458	1.02%	1.18%

*Harris J. Ashton, Ann Torre Bates, Gregory E. Johnson, Rupert H Johnson, Jr., David W. Niemiec, Larry D Thompson and Robert E. Wade are Trustees of the Fund who are currently serving and whose terms of office continued after the Annual Meeting of Shareholders.


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TEMPLETON GLOBAL INCOME FUND

Dividend Reinvestment and Cash Purchase Plan

The Fund offers a Dividend Reinvestment and Cash Purchase Plan (the “Plan”) with the following features:

Shareholders must affirmatively elect to participate in the Plan. If you decide to use this service, dividends and capital gains distributions will be reinvested automatically in shares of the Fund for your account.

Whenever the Fund declares dividends in either cash or shares of the Fund, if the market price is equal to or exceeds net asset value at the valuation date, the participant will receive the dividends entirely in new shares at a price equal to the net asset value, but not less than 95% of the then current market price of the Fund’s shares. If the market price is lower than net asset value or if dividends and/or capital gains distributions are payable only in cash, the participant will receive shares purchased on the New York Stock Exchange or otherwise on the open market.

A participant has the option of submitting additional cash payments to the Plan Administrator, in any amounts of at least $100, up to a maximum of $5,000 per month, for the purchase of Fund shares for his or her account. These payments can be made by check payable to American Stock Transfer and Trust Company, LLC (the “Plan Administrator”) and sent to American Stock Transfer and Trust Company, LLC, P.O. Box 922, Wall Street Station, New York, NY 10269-0560, Attention: Templeton Global Income Fund. The Plan Administrator will apply such payments (less a $5.00 service charge and less a pro rata share of trading fees) to purchases of Fund shares on the open market.

The automatic reinvestment of dividends and/or capital gains does not relieve the participant of any income tax that may be payable on dividends or distributions.

Whenever shares are purchased on the New York Stock Exchange or otherwise on the open market, each participant will pay a pro rata portion of trading fees. Trading fees will be deducted from amounts to be invested. The Plan Administrator’s fee for a sale of shares through the Plan is $15.00 per transaction plus a $0.12 per share trading fee.

A participant may withdraw from the Plan without penalty at any time by written notice to the Plan Administrator sent to American Stock Transfer and Trust Company, LLC, P.O. Box 922, Wall Street Station, New York, NY 10269-0560. Upon withdrawal, the participant will receive, without charge, share certificates issued in the participant’s name for all full shares held by the Plan Administrator; or, if the participant wishes, the Plan Administrator will sell the participant’s shares and send the proceeds to the participant, less a service charge of $15.00 and less trading fees of $0.12 per share. The Plan Administrator will convert any fractional shares held at the time of withdrawal to cash at current market price and send a check to the participant for the net proceeds.

For more information, please see the Plan’s Terms and Conditions located at the back of this report.

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TEMPLETON GLOBAL INCOME FUND

Transfer Agent

American Stock Transfer and Trust Company, LLC

P.O. Box 922, Wall Street Station

New York, NY 10269-0560

(800) 416-5585

www.astfinancial.com

Direct Deposit Service for Registered Shareholders

Cash distributions can now be electronically credited to a checking or savings account at any financial institution that participates in the Automated Clearing House (“ACH”) system. The Direct Deposit service is provided for registered shareholders at no charge. To enroll in the service, access your account online by going www.astfinancial.com or dial (800) 416-5585 (toll free) and follow the instructions. Direct Deposit will begin with the next scheduled distribution payment date following enrollment in the service.

Direct Registration

If you are a registered shareholder of the Fund, purchases of shares of the Fund can be electronically credited to your Fund account at American Stock Transfer and Trust Company, LLC through Direct Registration. This service provides shareholders with a convenient way to keep track of shares through book-entry transactions, electronically move book-entry shares between broker-dealers, transfer agents and DRS eligible issuers, and eliminate the possibility of lost certificates. For additional information, please contact American Stock Transfer and Trust Company, LLC at (800) 416-5585.

Shareholder Information

Shares of Templeton Global Income Fund are traded on the New York Stock Exchange under the symbol “GIM.” Information about the net asset value and the market price is available at franklintempleton.com.

For current information about distributions and shareholder accounts, call (800) 416-5585. Registered shareholders can access their Fund account on-line. For information go to American Stock Transfer and Trust Company, LLC’s web site at www.astfinancial.com and follow the instructions.

The daily closing net asset value as of the previous business day may be obtained when available by calling Franklin Templeton Fund Information after 7 a.m. Pacific time any business day at (800) DIAL BEN/342-5236. The Fund’s net asset value and dividends are also listed on the NASDAQ Stock Market, Inc.’s Mutual Fund Quotation Service (“NASDAQ MFQS”).

Shareholders not receiving copies of reports to shareholders because their shares are registered in the name of a broker or a custodian can request that they be added to the Fund’s mailing list by writing Templeton Global Income Fund, 100 Fountain Parkway, P.O. Box 33030, St. Petersburg, FL, 33733-8030.


34		Annual Report		franklintempleton.com

TEMPLETON GLOBAL INCOME FUND

Board Members and Officers

The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of US registered portfolios overseen in the Franklin Templeton Investments fund complex, are shown below. Generally, each board member serves until that person’s successor is elected and qualified.

Independent Board Members


Name,Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Harris J. Ashton (1932) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 1992	139	Bar-S Foods (meat packing company) (1981-2010).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).

Ann Torre Bates (1958) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2008	40	Ares Capital Corporation (specialty finance company) (2010-present), United Natural Foods, Inc. (distributor of natural, organic and specialty foods) (2013-present), Allied Capital Corporation (financial services) (2003-2010), SLM Corporation (Sallie Mae) (1997-2014) and Navient Corporation (loan management, servicing and asset recovery) (2014-2016).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Executive Vice President and Chief Financial Officer, NHP Incorporated (manager of multifamily housing) (1995-1997); and Vice President and Treasurer, US Airways, Inc. (until 1995).

Mary C. Choksi (1950) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2016	139	Avis Budget Group Inc. (car rental) (2007-present), Omnicom group Inc. (advertising and marketing communications services) (2011-present) and White Mountains Insurance Group, Ltd. (holding company) (2017-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Founder and Senior Advisor, Strategic Investment Group (investment management group) (2015-2017); Founding Partner and Senior Managing Director, Strategic Investment Group (1987-2015); Founding Partner and Managing Director, Emerging Markets Management LLC (investment management firm) (1987-2011); and Loan Officer/Senior Loan Officer/Senior Pension Investment Officer, World Bank Group (international financial institution) (1977-1987).

Edith E. Holiday (1952) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Trustee since 1996 and Lead Independent Trustee since 2007	139	Hess Corporation (exploration and refining of oil and gas) (1993-present), Canadian National Railway (railroad) (2001-present), White Mountains Insurance Group, Ltd. (holding company) (2004-present), Santander Consumer USA Holdings, Inc. (consumer fiancé) (2016-present), RTI International Metals, Inc. (manufacture and distribution of titanium) (1999-2015) and H.J. Heinz Company (processed foods and allied products) (1994-2013).

Principal Occupation During at Least the Past 5 Years: Director or Trustee of various companies and trusts; and formerly, Assistant to the President of the United States and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison - United States Treasury Department (1988-1989).

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TEMPLETON GLOBAL INCOME FUND

Independent Board Members (continued)


Name,Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

J. Michael Luttig (1954) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2009	139	Boeing Capital Corporation (aircraft financing) (2006-2013).

Principal Occupation During at Least the Past 5 Years:
Executive Vice President, General Counsel and member of the Executive Council, The Boeing Company (aerospace company) (2006-present); and formerly, Federal Appeals Court Judge, U.S. Court of Appeals for the Fourth Circuit (1991-2006).

David W. Niemiec (1949) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2005	40	Hess Midstream Partners LP (oil and gas midstream infrastructure) (2017-present).

Principal Occupation During at Least the Past 5 Years:
Advisor, Saratoga Partners (private equity fund); and formerly, Managing Director, Saratoga Partners (1998-2001) and SBC Warburg Dillon Read (investment banking) (1997-1998); Vice Chairman, Dillon, Read & Co. Inc. (investment banking) (1991-1997); and Chief Financial Officer, Dillon, Read & Co. Inc. (1982-1997).

Larry D. Thompson (1945) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2005	139	The Southern Company (energy company) (2014-present; previously 2010-2012), Graham Holdings Company (education and media organization) (2011-present) and Cbeyond, Inc. (business communications provider) (2010-2012).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; Counsel, Finch McCranie, LLP (law firm) (2015-present); Independent Compliance Monitor and Auditor, Volkswagen AF (manufacturer of automobiles and commercial vehicles) (2017-present); John A. Sibley Professor of Corporate and Business Law, University of Georgia School of Law (2015-present; previously 2011-2012); and formerly, Executive Vice President – Government Affairs, General Counsel and Corporate Secretary, PepsiCo, Inc. (consumer products) (2012-2014); Senior Vice President – Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (2004-2011); Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003).

Constantine D. Tseretopoulos (1954) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 1999	26	None

Principal Occupation During at Least the Past 5 Years:
Physician, Chief of Staff, owner and operator of the Lyford Cay Hospital (1987-present); director of various nonprofit organizations; and formerly, Cardiology Fellow, University of Maryland (1985-1987); and Internal Medicine Resident, Greater Baltimore Medical Center (1982-1985).

Robert E. Wade (1946) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2006	40	El Oro Ltd (investments) (2003-present).

Principal Occupation During at Least the Past 5 Years:
Attorney at law engaged in private practice as a sole practitioner (1972-2008) and member of various boards.

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TEMPLETON GLOBAL INCOME FUND

Interested Board Members and Officers


Name,Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Gregory E. Johnson (1961) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2006	153	None

Principal Occupation During at Least the Past 5 Years:
Chairman of the Board, Member - Office of the Chairman, Director and Chief Executive Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 43 of the investment companies in Franklin Templeton Investments; Vice Chairman, Investment Company Institute; and formerly, President, Franklin Resources, Inc. (1994-2015).

**Rupert H. Johnson, Jr. (1940) One Franklin Parkway San Mateo, CA 94403-1906	Chairman of the Board, Trustee and Vice President	Chairman of the Board and Trustee since 2013 and Vice President since 1996	139	None

Principal Occupation During at Least the Past 5 Years:
Vice Chairman, Member - Office of the Chairman and Director, Franklin Resources, Inc.; Director, Franklin Advisers, Inc.; Senior Vice President, Franklin Advisory Services, LLC; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton Investments.

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2012	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton Investments; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2009	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2009	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 45 of the investment companies in Franklin Templeton Investments.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since June 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 45 of the investment companies in Franklin Templeton Investments; formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton Investments (2009-2017).

Robert G. Kubilis (1973) One Franklin Parkway San Mateo, CA 94403-1906	Chief Financial Officer and Chief Accounting Officer and Treasurer	Since June 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting, Franklin Templeton Investments; and officer of 17 of the investment companies in Franklin Templeton Investments.

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TEMPLETON GLOBAL INCOME FUND

Interested Board Members and Officers (continued)


Name,Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 45 of the investment companies in Franklin Templeton Investments.

Christopher J. Molumphy (1962) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2002	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director and Executive Vice President, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton Institutional, LLC; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 22 of the investment companies in Franklin Templeton Investments.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2013	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton Investments; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 45 of the investment companies in Franklin Templeton Investments.

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2013	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton Investments; Vice President, Franklin Templeton Companies, LLC; officer of 45 of the investment companies in Franklin Templeton Investments; and formerly, Senior Associate General Counsel, Franklin Templeton Investments (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Karen L. Skidmore (1952) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2009	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	since 2005	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments.

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TEMPLETON GLOBAL INCOME FUND

Interested Board Members and Officers (continued)


Name,Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Secretary and Vice President	Secretary since 2013 and Vice President since 2011	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 45 of the investment companies in Franklin Templeton Investments.

*We base the number of portfolios on each separate series of the US registered investment companies within the Franklin Templeton Investments fund complex. These portfolios have a common investment manager or affiliated investment managers.

**Gregory E. Johnson is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director of Franklin Resources, Inc. (Resources), which is the parent company of the Fund’s investment manager. Rupert H. Johnson, Jr. is considered to be an interested person of the Fund under the federal securities laws due to his position as officer and director and major shareholder of Resources.

Note 1: Rupert H. Johnson, Jr. is the uncle of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Sarbanes-Oxley Act of 2002 and Rules adopted by the US Securities and Exchange Commission require the Fund to disclose whether the Fund’s Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund’s Board has determined that there is at least one such financial expert on the Audit Committee and has designated each of Ann Torre Bates and David W. Niemiec as an audit committee financial expert. The Board believes that Ms. Bates and Mr. Niemiec qualify as such an expert in view of their extensive business background and experience. Ms. Bates has served as a member of the Fund Audit Committee since 2008. She currently serves as a director of Ares Capital Corporation (2010-present) and United Natural Foods, Inc. (2013-present) and was formerly a director of Navient Corporation from 2014 to 2016, SLM Corporation from 1997 to 2014 and Allied Capital Corporation from 2003 to 2010, Executive Vice President and Chief Financial Officer of NHP Incorporated from 1995 to 1997 and Vice President and Treasurer of US Airways, Inc. until 1995. Mr. Niemiec has served as a member of the Fund Audit Committee since 2005, currently serves as an Advisor to Saratoga Partners and was formerly its Managing Director from 1998 to 2001 and serves as a director of Hess Midstream Partners LP (2017-present). Mr. Niemiec was formerly a director of Emeritus Corporation from 1999 to 2010 and OSI Pharmaceuticals, Inc. from 2006 to 2010, Managing Director of SBC Warburg Dillon Read from 1997 to 1998, and was Vice Chairman from 1991 to 1997 and Chief Financial Officer from 1982 to 1997 of Dillon, Read & Co. Inc. As a result of such background and experience, the Board believes that Ms. Bates and Mr. Niemiec have each acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Ms. Bates and Mr. Niemiec are independent Board members as that term is defined under the applicable US Securities and Exchange Commission Rules and Releases or the listing standards applicable to the Fund.

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TEMPLETON GLOBAL INCOME FUND

Shareholder Information

Proxy Voting Policies and Procedures

The Fund’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund’s proxy voting records are also made available online at franklintempleton.com and posted on the US Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments

The Fund files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year on Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

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TEMPLETON GLOBAL INCOME FUND

TERMS AND CONDITIONS OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN

1. American Stock Transfer and Trust Company, LLC (“AST”), will act as Plan Administrator and will open an account for participating shareholders (“participant”) under the Dividend Reinvestment and Cash Purchase Plan (the “Plan”) in the same name as that in which the participant’s present shares are registered, and put the Plan into effect as of the first record date for a dividend or capital gains distribution after AST receives the authorization duly executed by such participant.

2. Whenever Templeton Global Income Fund (the “Fund”) declares a distribution from capital gains or an income dividend payable in either cash or shares of the Fund (“Fund shares”), if the market price per share on the valuation date equals or exceeds the net asset value per share, participants will receive such dividend or distribution entirely in Fund shares, and AST shall automatically receive such Fund shares for participant accounts including aggregate fractions. The number of additional Fund shares to be credited to participant accounts shall be determined by dividing the equivalent dollar amount of the capital gains distribution or dividend payable to participants by the Fund’s net asset value per share of the Fund shares on the valuation date, provided that the Fund shall not issue such shares at a price lower than 95% of the current market price per share. The valuation date will be the payable date for such distribution or dividend.

3. Whenever the Fund declares a distribution from capital gains or an income dividend payable only in cash, or if the Fund’s net asset value per share exceeds the market price per share on the valuation date, AST shall apply the amount of such dividend or distribution payable to participants to the purchase of Fund shares on the open market (less their pro rata share of trading fees incurred with respect to open market purchases in connection with the reinvestment of such dividend or distribution). If, before AST has completed its purchases, the market price exceeds the net asset value per share, the average per share purchase price paid by AST may exceed the net asset value of the Fund’s shares, resulting in the acquisition of fewer shares than if the dividend or capital gains distribution had been paid in shares issued by the Fund at net asset value per share. Such purchases will be made promptly after the payable date for such dividend or distribution, and in no event later than five business days prior to the record date for the next dividend or distribution except where temporary curtailment or suspension of purchase is necessary to comply with applicable provisions of the Federal securities laws.

4. A participant has the option of submitting additional payments to AST, in any amounts of at least $100, up to a maximum of $5,000 per month, for the purchase of Fund shares for his or her account. These payments may be made electronically through AST at www.astfinancial.com or by check payable to “American Stock Transfer and Trust Company, LLC” and sent to American Stock Transfer and Trust Company, LLC, P.O. Box 922, Wall Street Station, New York, NY 10269-0560, Attention: Templeton Global Income Fund. AST shall apply such payments (less a $5.00 service charge and less a pro rata share of trading fees) to purchases of Fund shares on the open market, as discussed below in paragraph 6. AST shall make such purchases promptly beginning on the dividend payment date, which is usually the last business day of each month, or, in the event that there is no dividend or distribution paid in a month, AST shall make such purchases on the last business day of that month, and in no event more than 30 days after receipt, except where necessary to comply with provisions of the Federal securities laws. Any voluntary payment received less than two business days before an investment date shall be invested during the following month unless there are more than 30 days until the next investment date, in which case such payment will be returned to the participant. AST shall return to the participant his or her entire voluntary cash payment upon written notice of withdrawal received by AST not less than 48 hours before such payment is to be invested. Such written notice shall be sent to AST by the participant, as discussed below in paragraph 14.

5. For all purposes of the Plan: (a) the market price of the Fund’s shares on a particular date shall be the last sale price on the New York Stock Exchange on that date if a business day and if not, on the preceding business day, or if there is no sale on such Exchange on such date, then the mean between the closing bid and asked quotations for such shares on such Exchange on such date, and (b) net asset value per share of the Fund’s shares on a particular date shall be as determined by or on behalf of the Fund.

6. Open market purchases provided for above may be made on any securities exchange where Fund shares are traded, in the over-the-counter market or in negotiated transactions and may be on such terms as to price, delivery and otherwise as AST shall determine. Participant funds held by AST uninvested will not bear interest, and it is understood that, in any event, AST shall have no liability in connection with any inability to purchase Fund shares within five business days prior to the record date for the next dividend or distribution as herein provided, or with the timing of any purchases effected. AST shall have no responsibility as to the value of the Fund shares acquired for participant accounts. For the purposes of purchases on the open market, AST may aggregate purchases with those of other participants, and the average price (including trading fees) of all shares purchased by AST shall be the price per share allocable to all participants.

7. AST will hold shares acquired pursuant to this Plan, together with the shares of other participants acquired pursuant to this Plan, in its name or that of its nominee. AST will forward to participants any proxy solicitation material and will vote any shares so held for participants only in accordance with the proxies returned by participants to the Fund. Upon written request, AST will deliver to participants, without charge, a certificate or certificates for all or a portion of the full shares held by AST.

8. AST will confirm to participants each acquisition made for an account as soon as practicable but not later than ten business days after the date thereof. AST will send to participants a detailed account statement showing total dividends and distributions, date of investment, shares acquired and price per share, and total shares of record for the account. Although participants may from time to time have an undivided fractional interest (computed to three decimal places) in a share of the Fund, no certificates for a fractional share will be issued. However, dividends and distributions on fractional shares will be credited to participant accounts. In the event of termination of an account under the Plan, AST will adjust for any such undivided fractional interest in cash at the market price of the Fund’s shares on the date of termination.

9. Any share dividends or split shares distributed by the Fund on shares held by AST for participants will be credited to participant accounts. In the event that the Fund makes available to its shareholders transferable rights to purchase additional Fund shares or other securities, AST will sell such rights and apply the proceeds of the sale to the purchase of additional Fund shares for the participant accounts. The shares held for participants under the Plan will be added to underlying shares held by participants in calculating the number of rights to be issued.

10. AST’s service charge for capital gains or income dividend purchases will be paid by the Fund when shares are issued by the Fund or purchased on the open market. AST will deduct a $5.00 service charge from each voluntary cash payment. Participants will be charged a pro rata share of trading fees on all open market purchases.

11. Participants may withdraw shares from such participant’s account or terminate their participation under the Plan by notifying AST in writing. Such withdrawal or termination will be effective immediately if notice is


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TEMPLETON GLOBAL INCOME FUND

TERMS AND CONDITIONS OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (continued)

received by AST not less than two days prior to any dividend or distribution record date; otherwise such withdrawal or termination will be effective after the investment of any current dividend or distribution or voluntary cash payment. The Plan may be terminated by AST or the Fund upon 90 days’ notice in writing mailed to participants. Upon any withdrawal or termination, AST will cause a certificate or certificates for the full shares held by AST for participants and cash adjustment for any fractional shares (valued at the market value of the shares at the time of withdrawal or termination) to be delivered to participants, less any trading fees. Alternatively, a participant may elect by written notice to AST to have AST sell part or all of the shares held for him and to remit the proceeds to him. AST is authorized to deduct a $15.00 service charge and a $0.12 per share trading fee for this transaction from the proceeds. If a participant disposes of all shares registered in his name on the books of the Fund, AST may, at its option, terminate the participant’s account or determine from the participant whether he wishes to continue his participation in the Plan.

12. These terms and conditions may be amended or supplemented by AST or the Fund at any time or times, except when necessary or appropriate to comply with applicable law or the rules or policies of the U.S. Securities and Exchange Commission or any other regulatory authority, only by mailing to participants appropriate written notice at least 90 days prior to the effective date thereof. The amendment or supplement shall be deemed to be accepted by participants unless, prior to the effective date thereof, AST receives written notice of the termination of a participant account under the Plan. Any such amendment may include an appointment by AST in its place and stead of a successor Plan Administrator under these terms and conditions, with full power and authority to perform all or any of the acts to be performed by AST under these terms and conditions. Upon any such appointment of a Plan Administrator for the purpose of receiving dividends and distributions, the Fund will be authorized to pay to such successor Plan Administrator, for a participant’s account, all dividends and distributions payable on Fund shares held in a participant’s name or under the Plan for retention or application by such successor Plan Administrator as provided in these terms and conditions.

13. AST shall at all times act in good faith and agree to use its best efforts within reasonable limits to ensure the accuracy of all services performed under this Agreement and to comply with applicable law, but shall assume no responsibility and shall not be liable for loss or damage due to errors unless such error is caused by AST’s negligence, bad faith or willful misconduct or that of its employees.

14. Any notice, instruction, request or election which by any provision of the Plan is required or permitted to be given or made by the participant to AST shall be in writing addressed to American Stock Transfer and Trust Company, LLC, P.O. Box 922, Wall Street Station, New York, NY 10269-0560, or www.astfinancial.com or such other address as AST shall furnish to the participant, and shall have been deemed to be given or made when received by AST.

15. Any notice or other communication which by any provision of the Plan is required to be given by AST to the participant shall be in writing and shall be deemed to have been sufficiently given for all purposes by being deposited postage prepaid in a post office letter box addressed to the participant at his or her address as it shall last appear on AST’s records. The participant agrees to notify AST promptly of any change of address.

16. These terms and conditions shall be governed by and construed in accordance with the laws of the State of New York and the rules and regulations of the U.S. Securities and Exchange Commission, as they may be amended from time to time.


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		Annual Report
		Templeton Global Income Fund
		Investment Manager
		Franklin Advisers, Inc.
		Transfer Agent
		American Stock Transfer & Trust Co., LLC 6201 15th Avenue Brooklyn, NY 11219 Toll Free Number: (800) 416-5585 Hearing Impaired Number: (866) 703-9077 International Phone Number: (718) 921-8124 www.astfinancial.com

		Fund Information
		(800) DIAL BEN^® / 342-5236

Investors should be aware that the value of investments made for the Fund may go down as well as up. Like any investment in securities, the value of the Fund’s portfolio will be subject to the risk of loss from market, currency, economic, political and other factors. The Fund and its investors are not protected from such losses by the investment manager. Therefore, investors who cannot accept this risk should not invest in shares of the Fund.

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.


© 2018 Franklin Templeton Investments. All rights reserved.		TLGIM A 02/18

Item 2.

Code of Ethics.

(a)	The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c)

N/A

(d)

N/A

(f)	Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3.

Audit Committee Financial Expert.


(a)	(1)	The Registrant has an audit committee financial expert serving on its audit committee.

	(2)	The audit committee financial expert is David W. Niemiec and he is “independent” as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a) Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $55,606 for the fiscal year ended December 31, 2017 and $42,795 for the fiscal year ended December 31, 2016.

(b) Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning.

(d) All Other Fees

There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4.

There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant, other than the services reported in paragraphs (a)-(c) of Item 4.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

(i) pre-approval of all audit and audit related services;

(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;

(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) There were no non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control

with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5.

Audit Committee of Listed Registrants

Members of the Audit Committee are: Ann Torre Bates, David W. Niemiec, J. Michael Luttig and Constantine D. Tseretopoulos.

Item 6.

Schedule of Investments. N/A

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The board of trustees of the Fund has delegated the authority to vote proxies related to the portfolio securities held by the Fund to the Fund’s investment manager Franklin Advisers, Inc. in accordance with the Proxy Voting Policies and Procedures (Policies) adopted by the investment manager.

The investment manager has delegated its administrative duties with respect to the voting of proxies for securities to the Proxy Group within Franklin Templeton Companies, LLC (Proxy Group), an affiliate and wholly owned subsidiary of Franklin Resources, Inc. All proxies received by the Proxy Group will be voted based upon the investment manager’s instructions and/or policies. The investment manager votes proxies solely in the best interests of the Fund and its shareholders.

To assist it in analyzing proxies of equity securities, the investment manager subscribes to Institutional Shareholder Services, Inc. (ISS), an unaffiliated third-party corporate governance research service that provides in-depth analyses of shareholder meeting agendas, vote recommendations, vote execution services, ballot reconciliation services, recordkeeping and vote disclosure services. In addition, the investment manager subscribes to Glass, Lewis & Co., LLC (Glass Lewis), an unaffiliated third-party analytical research firm, to receive analyses and vote recommendations on the shareholder meetings of publicly held U.S. companies, as well as a limited subscription to its international research. Also, the investment manager has a supplemental subscription to Egan-Jones Proxy Services (Egan-Jones), an unaffiliated third party proxy advisory firm, to receive analyses and vote recommendations. Although analyses provided by ISS, Glass Lewis, Egan-Jones, and/or another independent third party proxy service provider (each a Proxy Service) are thoroughly reviewed and considered in making a final voting decision, the investment manager does not consider recommendations from a Proxy Service or any third party to be determinative of the investment manager’s ultimate decision. Rather, the investment manager exercises its independent judgment in making voting decisions. For most proxy proposals, the investment manager’s evaluation should result in the same position being taken for all Funds. In some cases, however, the evaluation may result in a Fund voting differently, depending upon the nature and objective of the Fund, the composition of its portfolio and other factors. As a matter of policy, the officers, directors/trustees and employees of the investment manager and the Proxy Group will not be influenced by outside sources whose interests conflict with the interests of the Fund and its shareholders. Efforts are made to resolve all conflicts in the best interests of the investment manager’s clients. Material

conflicts of interest are identified by the Proxy Group based upon analyses of client, distributor, broker-dealer and vendor lists, information periodically gathered from directors and officers, and information derived from other sources, including public filings. In situations where a material conflict of interest is identified, the Proxy Group may vote consistent with the voting recommendation of a Proxy Service; or send the proxy directly to the Fund’s board or a committee of the board with the investment manager’s recommendation regarding the vote for approval.

Where a material conflict of interest has been identified, but the items on which the investment manager’s vote recommendations differ from a Proxy Service and relate specifically to (1) shareholder proposals regarding social or environmental issues, (2) “Other Business” without describing the matters that might be considered, or (3) items the investment manager wishes to vote in opposition to the recommendations of an issuer’s management, the Proxy Group may defer to the vote recommendations of the investment manager rather than sending the proxy directly to the Fund’s board or a board committee for approval.

To avoid certain potential conflicts of interest, the investment manager will employ echo voting, if possible, in the following instances: (1) when the Fund invests in an underlying fund in reliance on any one of Sections 12(d) (1) (E), (F), or (G) of the 1940 Act, the rules thereunder, or pursuant to a SEC exemptive order thereunder; (2) when the Fund invests uninvested cash in affiliated money market funds pursuant to the rules under the 1940 Act or any exemptive orders thereunder (“cash sweep arrangement”); or (3) when required pursuant to the Fund’s governing documents or applicable law. Echo voting means that the investment manager will vote the shares in the same proportion as the vote of all of the other holders of the underlying fund’s shares.

The recommendation of management on any issue is a factor that the investment manager considers in determining how proxies should be voted. However, the investment manager does not consider recommendations from management to be determinative of the investment manager’s ultimate decision. As a matter of practice, the votes with respect to most issues are cast in accordance with the position of the company’s management. Each issue, however, is considered on its own merits, and the investment manager will not support the position of the company’s management in any situation where it deems that the ratification of management’s position would adversely affect the investment merits of owning that company’s shares.

Engagement with issuers. The investment manager believes that engagement with issuers is important to good corporate governance and to assist in making proxy voting decisions. The investment manager may engage with issuers to discuss specific ballot items to be voted on in advance of an annual or special meeting to obtain further information or clarification on the proposals. The investment manager may also engage with management on a range of environmental, social or corporate governance issues throughout the year.

Investment manager’s proxy voting policies and principles The investment manager has adopted general proxy voting guidelines, which are summarized below. These guidelines are not an exhaustive list of all the issues that may arise and the investment manager cannot anticipate all future situations. In all cases, each proxy and proposal (including both management and shareholder proposals) will be considered based on the relevant facts and circumstances on a case-by-case basis.

Board of directors. The investment manager supports an independent, diverse board of directors, and prefers that key committees such as audit, nominating, and compensation committees be comprised of independent directors. The investment manager supports boards with strong risk management oversight. The investment manager will generally vote against management efforts to classify a board and will generally support proposals to declassify the board of directors. The investment manager will consider withholding votes from directors who have attended less than 75% of meetings without a valid reason. While generally in favor of separating Chairman and CEO positions, the investment manager will review this issue as well as proposals to restore or provide for cumulative voting on a case-by-case basis, taking into consideration factors such as the company’s corporate governance guidelines or provisions and performance. The investment manager generally will support non-binding shareholder proposals to require a majority vote standard for the election of directors; however, if these proposals are binding, the investment manager will give careful review on a case-by-case basis of the potential ramifications of such implementation.

In the event of a contested election, the investment manager will review a number of factors in making a decision including management’s track record, the company’s financial performance, qualifications of candidates on both slates, and the strategic plan of the dissidents and/or shareholder nominees.

Ratification of auditors of portfolio companies. The investment manager will closely scrutinize the independence, role and performance of auditors. On a case-by-case basis, the investment manager will examine proposals relating to non-audit relationships and non-audit fees. The investment manager will also consider, on a case-by-case basis, proposals to rotate auditors, and will vote against the ratification of auditors when there is clear and compelling evidence of a lack of independence, accounting irregularities or negligence. The investment manager may also consider whether the ratification of auditors has been approved by an appropriate audit committee that meets applicable composition and independence requirements.

Management and director compensation. A company’s equity-based compensation plan should be in alignment with the shareholders’ long-term interests. The investment manager believes that executive compensation should be directly linked to the performance of the company. The investment manager evaluates plans on a case-by-case basis by considering several factors to determine whether the plan is fair and reasonable, including the ISS quantitative model utilized to assess such plans and/or the Glass Lewis evaluation of the plans. The investment manager will generally oppose plans that have the potential to be excessively dilutive, and will almost always oppose plans that are structured to allow the repricing of underwater options, or plans that have an automatic share replenishment “evergreen” feature. The investment manager will generally support employee stock option plans in which the purchase price is at least 85% of fair market value, and when potential dilution is 10% or less.

Severance compensation arrangements will be reviewed on a case-by-case basis, although the investment manager will generally oppose “golden parachutes” that are considered to be excessive. The investment manager will normally support proposals that require a percentage of directors’ compensation to be in the form of common stock, as it aligns their interests with those of shareholders.

The investment manager will review non-binding say-on-pay proposals on a case-by-case basis, and will generally vote in favor of such proposals unless compensation is misaligned with performance and/or shareholders’ interests, the

company has not provided reasonably clear disclosure regarding its compensation practices, or there are concerns with the company’s remuneration practices.

Anti-takeover mechanisms and related issues. The investment manager generally opposes anti-takeover measures since they tend to reduce shareholder rights. However, as with all proxy issues, the investment manager conducts an independent review of each anti-takeover proposal. On occasion, the investment manager may vote with management when the research analyst has concluded that the proposal is not onerous and would not harm the Fund or its shareholders’ interests. The investment manager generally supports proposals that require shareholder rights’ plans (“poison pills”) to be subject to a shareholder vote and will closely evaluate such plans on a case-by-case basis to determine whether or not they warrant support. In addition, the investment manager will generally vote against any proposal to issue stock that has unequal or subordinate voting rights. The investment manager generally opposes any supermajority voting requirements as well as the payment of “greenmail.” The investment manager generally supports “fair price” provisions and confidential voting. The investment manager will review a company’s proposal to reincorporate to a different state or country on a case-by-case basis taking into consideration financial benefits such as tax treatment as well as comparing corporate governance provisions and general business laws that may result from the change in domicile.

Changes to capital structure. The investment manager realizes that a company’s financing decisions have a significant impact on its shareholders, particularly when they involve the issuance of additional shares of common or preferred stock or the assumption of additional debt. The investment manager will review, on a case-by-case basis, proposals by companies to increase authorized shares and the purpose for the increase. The investment manager will generally not vote in favor of dual-class capital structures to increase the number of authorized shares where that class of stock would have superior voting rights. The investment manager will generally vote in favor of the issuance of preferred stock in cases where the company specifies the voting, dividend, conversion and other rights of such stock and the terms of the preferred stock issuance are deemed reasonable. The investment manager will review proposals seeking preemptive rights on a case-by-case basis.

Mergers and corporate restructuring. Mergers and acquisitions will be subject to careful review by the research analyst to determine whether they would be beneficial to shareholders. The investment manager will analyze various economic and strategic factors in making the final decision on a merger or acquisition. Corporate restructuring proposals are also subject to a thorough examination on a case-by-case basis.

Environmental and social issues. The investment manager considers environmental and social issues alongside traditional financial measures to provide a more comprehensive view of the value, risk and return potential of an investment. Companies may face significant financial, legal and reputational risks resulting from poor environmental and social practices, or negligent oversight of environmental or social issues. Franklin Templeton’s “Responsible Investment Principles and Policies” describes the investment manager’s approach to consideration of environmental, social and governance issues within the investment manager’s processes and ownership practices.

In the investment manager’s experience, those companies that are managed well are often effective in dealing with the relevant environmental and social issues that pertain to their business. As such, the investment manager will

generally give management discretion with regard to environmental and social issues. However, in cases where management and the board have not demonstrated adequate efforts to mitigate material environmental or social risks, have engaged in inappropriate or illegal conduct, or have failed to adequately address current or emergent risks that threaten shareholder value, the investment manager may choose to support well-crafted shareholder proposals that serve to promote or protect shareholder value. This may include seeking appropriate disclosure regarding material environmental and social issues. The investment manager will review shareholder proposals on a case-by-case basis and may support those that serve to enhance value or mitigate risk, are drafted appropriately, and do not disrupt the course of business or require a disproportionate or inappropriate use of company resources.

The investment manager will consider supporting a shareholder proposal seeking disclosure and greater board oversight of lobbying and corporate political contributions if the investment manager believes that there is evidence of inadequate oversight by the company’s board, if the company’s current disclosure is significantly deficient, or if the disclosure is notably lacking in comparison to the company’s peers.

Governance matters. The investment manager generally supports the right of shareholders to call special meetings and act by written consent. However, the investment manager will review such shareholder proposals on a case-by-case basis in an effort to ensure that such proposals do not disrupt the course of business or require a disproportionate or inappropriate use of company resources.

Proxy access. In cases where the investment manager is satisfied with company performance and the responsiveness of management, it will generally vote against shareholder proxy access proposals not supported by management. In other instances, the investment manager will consider such proposals on a case-by-case basis, taking into account factors such as the size of the company, ownership thresholds and holding periods, nomination limits (e.g., number of candidates that can be nominated), the intentions of the shareholder proponent, and shareholder base.

Global corporate governance. Many of the tenets discussed above are applied to the investment manager’s proxy voting decisions for international investments. However, the investment manager must be flexible in these worldwide markets. Principles of good corporate governance may vary by country, given the constraints of a country’s laws and acceptable practices in the markets. As a result, it is on occasion difficult to apply a consistent set of governance practices to all issuers. As experienced money managers, the investment manager’s analysts are skilled in understanding the complexities of the regions in which they specialize and are trained to analyze proxy issues germane to their regions.

The investment manager will generally attempt to process every proxy it receives for all domestic and foreign securities. However, there may be situations in which the investment manager may be unable to successfully vote a proxy, or may choose not to vote a proxy, such as where: (i) a proxy ballot was not received from the custodian bank; (ii) a meeting notice was received too late; (iii) there are fees imposed upon the exercise of a vote and it is determined that such fees outweigh the benefit of voting; (iv) there are legal encumbrances to voting, including blocking restrictions in certain markets that preclude the ability to dispose of a security if the investment manager votes a proxy or where the investment manager is prohibited from voting by applicable

law, economic or other sanctions, or other regulatory or market requirements, including but not limited to, effective Powers of Attorney; (v) additional documentation or the disclosure of beneficial owner details is required; (vi) the investment manager held shares on the record date but has sold them prior to the meeting date; (vii) a proxy voting service is not offered by the custodian in the market; (viii) due to either system error or human error, the investment manager’s intended vote is not correctly submitted; (ix) the investment manager believes it is not in the best interest of the Fund or its shareholders to vote the proxy for any other reason not enumerated herein; or (x) a security is subject to a securities lending or similar program that has transferred legal title to the security to another person.

In some non-U.S. jurisdictions, even if the investment manager uses reasonable efforts to vote a proxy on behalf of the Fund, such vote or proxy may be rejected because of (a) operational or procedural issues experienced by one or more third parties involved in voting proxies in such jurisdictions; (b) changes in the process or agenda for the meeting by the issuer for which the investment manager does not have sufficient notice; or (c) the exercise by the issuer of its discretion to reject the vote of the investment manager. In addition, despite the best efforts of the Proxy Group and its agents, there may be situations where the investment manager’s votes are not received, or properly tabulated, by an issuer or the issuer’s agent.

The investment manager or its affiliates may, on behalf of one or more of the proprietary registered investment companies advised by the investment manager or its affiliates, determine to use its best efforts to recall any security on loan where the investment manager or its affiliates (a) learn of a vote on a material event that may affect a security on loan and (b) determine that it is in the best interests of such proprietary registered investment companies to recall the security for voting purposes.

Procedures for meetings involving fixed income securities. From time to time, certain custodians may process events for fixed income securities through their proxy voting channels rather than corporate action channels for administrative convenience. In such cases, the Proxy Group will receive ballots for such events on the ISS voting platform. The Proxy Group will solicit voting instructions from the investment manager for each Fund involved. If the Proxy Group does not receive voting instructions from the investment manager, the Proxy Group will take no action on the event. The investment manager may be unable to vote a proxy for a fixed income security, or may choose not to vote a proxy, for the reasons described under the section entitled “Proxy Procedures.”

The Proxy Group will monitor such meetings involving fixed income securities for conflicts of interest in accordance with these procedures for fixed income securities. If a fixed income issuer is flagged as a potential conflict of interest, the investment manager may nonetheless vote as it deems in the best interests of the Fund. The investment manager will report such decisions on an annual basis to the Fund board as may be required.

Shareholders may view the complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923, Attention: Proxy Group. Copies of the Fund’s proxy voting records are available online at franklintempleton.com and posted on the SEC website at www.sec.gov. The proxy voting records are updated each year by August 31 to reflect the most recent 12-month period ended June 30.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

(a)(1) As of February 26, 2018, the portfolio managers of the Fund is as follows:

MICHAEL HASENSTAB, Ph.D., Senior Vice President of Franklin Advisers, Inc.

Dr. Hasenstab has been a portfolio manager of the Fund since 2002. He has final authority over all aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated management requirements. The degree to which he may perform these functions, and the nature of these functions, may change from time to time. He first joined Franklin Templeton Investments in 1995, rejoining again in 2001 after a three-year leave to obtain his PH.D.

SONAL DESAI, PH.D., Portfolio Manager of Franklin Advisers, Inc.

Dr. Desai has been a portfolio manager of the Fund since 2011, providing research and advice on the purchases and sales of individual securities, and portfolio risk assessment. She joined Franklin Templeton Investments in 2009. Prior to joining Franklin Templeton Investments, she was part of the Global Credit team at Thames River Capital in London, where she was responsible for shaping the team’s top-down global view on macroeconomic and market developments covering both G10 and global emerging markets.

(a)(2) This section reflects information about the portfolio managers as of the fiscal year ended December 31, 2017.

The following table shows the number of other accounts managed by each portfolio manager and the total assets in the accounts managed within each category:


Name	Number of Other Registered Investment Companies Managed¹	Assets of Other Registered Investment Companies Managed (x $1 million)¹		Number of Other Pooled Investment Vehicles Managed¹	Assets of Other Pooled Investment Vehicles Managed (x $1 million)¹		Number of Other Accounts Managed¹	Assets of Other Accounts Managed (x $1 million)¹
Michael Hasenstab	18		53,604.0	43²		68,860.9	19²	5,772.4
Sonal Desai	5		5,100.4	13		52,506.4	0	N/A

1. The various pooled investment vehicles and accounts listed are managed by a team of investment professionals. Accordingly, the individual managers listed would not be solely responsible for managing such listed amounts.

2. Dr. Hasenstab manages Pooled Investment Vehicles and Other Accounts with $10,282.8 in total assets with a performance fee.

Portfolio managers that provide investment services to the Fund may also provide services to a variety of other investment products, including other funds, institutional accounts and private accounts. The advisory fees for some of such other products and accounts may be different than that charged to the Fund and may include performance based compensation (as noted, in the chart above, if any). This may result in fees that are higher (or lower) than the advisory fees paid by the Fund. As a matter of policy, each fund or account is managed solely for the benefit of the beneficial owners thereof. As discussed

below, the separation of the trading execution function from the portfolio management function and the application of objectively based trade allocation procedures help to mitigate potential conflicts of interest that may arise as a result of the portfolio managers managing accounts with different advisory fees.

Conflicts. The management of multiple funds, including the Fund, and accounts may also give rise to potential conflicts of interest if the funds and other accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts. The investment manager seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment strategies that are used in connection with the management of the Fund. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which may minimize the potential for conflicts of interest. As noted above, the separate management of the trade execution and valuation functions from the portfolio management process also helps to reduce potential conflicts of interest. However, securities selected for funds or accounts other than the Fund may outperform the securities selected for the Fund. Moreover, if a portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and other accounts. The investment manager seeks to manage such potential conflicts by using procedures intended to provide a fair allocation of buy and sell opportunities among funds and other accounts.

The structure of a portfolio manager’s compensation may give rise to potential conflicts of interest. A portfolio manager’s base pay and bonus tend to increase with additional and more complex responsibilities that include increased assets under management. As such, there may be an indirect relationship between a portfolio manager’s marketing or sales efforts and his or her bonus.

Finally, the management of personal accounts by a portfolio manager may give rise to potential conflicts of interest. While the funds and the manager have adopted a code of ethics which they believe contains provisions reasonably necessary to prevent a wide range of prohibited activities by portfolio managers and others with respect to their personal trading activities, there can be no assurance that the code of ethics addresses all individual conduct that could result in conflicts of interest.

The manager and the Fund have adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.

Compensation. The investment manager seeks to maintain a compensation program that is competitively positioned to attract, retain and motivate top-quality investment professionals. Portfolio managers receive a base salary, a cash incentive bonus opportunity, an equity compensation opportunity, and a benefits package. Portfolio manager compensation is reviewed annually and the level of compensation is based on individual performance, the salary range for a portfolio manager’s level of responsibility and Franklin Templeton guidelines. Portfolio managers are provided no financial incentive to favor one fund or

account over another. Each portfolio manager’s compensation consists of the following three elements:

Base salary Each portfolio manager is paid a base salary.

Annual bonus Annual bonuses are structured to align the interests of the portfolio manager with those of the Fund’s shareholders. Each portfolio manager is eligible to receive an annual bonus. Bonuses generally are split between cash (50% to 65%) and restricted shares of Resources stock (17.5% to 25%) and mutual fund shares (17.5% to 25%). The deferred equity-based compensation is intended to build a vested interest of the portfolio manager in the financial performance of both Resources and mutual funds advised by the investment manager. The bonus plan is intended to provide a competitive level of annual bonus compensation that is tied to the portfolio manager achieving consistently strong investment performance, which aligns the financial incentives of the portfolio manager and Fund shareholders. The Chief Investment Officer of the investment manager and/or other officers of the investment manager, with responsibility for the Fund, have discretion in the granting of annual bonuses to portfolio managers in accordance with Franklin Templeton guidelines. The following factors are generally used in determining bonuses under the plan:

•

Investment performance. Primary consideration is given to the historic investment performance of all accounts managed by the portfolio manager over the 1, 3 and 5 preceding years measured against risk benchmarks developed by the fixed income management team. The pre-tax performance of each fund managed is measured relative to a relevant peer group and/or applicable benchmark as appropriate.

•

Non-investment performance. The more qualitative contributions of the portfolio manager to the investment manager’s business and the investment management team, including business knowledge, productivity, customer service, creativity, and contribution to team goals, are evaluated in determining the amount of any bonus award.

•

Responsibilities. The characteristics and complexity of funds managed by the portfolio manager are factored in the investment manager’s appraisal.

Additional long-term equity-based compensation Portfolio managers may also be awarded restricted shares or units of Resources stock or restricted shares or units of one or more mutual funds. Awards of such deferred equity-based compensation typically vest over time, so as to create incentives to retain key talent.

Portfolio managers also participate in benefit plans and programs available generally to all employees of the investment manager.

Ownership of Fund shares. The investment manager has a policy of encouraging portfolio managers to invest in the funds they manage. Exceptions arise when, for example, a fund is closed to new investors or when tax considerations or jurisdictional constraints cause such an investment to be inappropriate for the portfolio manager. The following is the dollar range of Fund shares beneficially owned by the portfolio manager (such amounts may change from time to time):


Portfolio Manager	Dollar Range of Fund Shares Beneficially Owned
Michael Hasenstab	$	10,001 - $50,000
Sonal Desai		None

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11.

Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls. There have been no changes in the Registrant’s internal controls or in other factors that could materially affect the internal controls over financial reporting subsequent to the date of their evaluation in connection with the preparation of this Shareholder Report on Form N-CSR.

Item 12.

Exhibits.

(a)(1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer -Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TEMPLETON GLOBAL INCOME FUND


By		/s/ MATTHEW T. HINKLE
		Matthew T. Hinkle
		Chief Executive Officer –
		Finance and Administration

Date February 26, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By		/s/ MATTHEW T. HINKLE
		Matthew T. Hinkle
		Chief Executive Officer –
		Finance and Administration

Date February 26, 2018


By		/s/ ROBERT G. KUBILIS
		Robert G. Kubilis
		Chief Financial Officer and
		Chief Accounting Officer

Date February 26, 2018